Capital contribution in kind

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When you contribute an asset, like land you previously purchased, as capital into a company, it is considered a transfer of property. This transfer can indeed result in a capital gains tax liability for you, even if the asset has appreciated in value since your initial purchase.

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(Querist)
10 December 2021 I bought a piece of land 3 years back for ₹1 lakh. Today its value is ₹2lakhs.
I want to introduce this piece of land as capital contribution in a company.
Would this result in capital gain tax for me?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
10 December 2021 Yes, as transfer of property to the company happen.
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arjun sachdeva

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arjun sachdeva (Querist)
10 December 2021 I know the assets can be transferred to the company. Question is whether that will result in capital gain tax for me?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
10 December 2021 Yes, capital gains tax arise in view of transfer of property
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