Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2014 A person brings his land (held it for nearly 10 years to a partnership firm as his capital. Later the firm (within one year) sells the land. Kindly tell me the point/s at which capital gain is applicable.

TKKKKKK

TKKKKKK (Expert)
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17 March 2014 capital gain calculation:

sale consideration (fair market value as on date when a person brought asset in the business)-value 1
Less Indexed cost of acquisition

=Long term capital gain

Business Income

sale consideration of land
Less cost of land -(value 1)
development exp
=taxable business income

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 1. Transfer of asset by a person to a partnership attracts capital gain u/s 45(4).

2. The amount recorded in the books of the firm shall be the sale consideration.

3. However, in case of land or building, Section 50C will be attracted and the stamp duty value shall be taken to be the sale consideration.

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