Capital gain - capital contribution agri lands by incoming

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 February 2012 VEF ,an existing partneship firm with 2 partners with cap.of Rs.1 crore.Now they want to go for expansion of poultry farm with project cost to be around 10 crores and banks insisting that partners capital should be around Rs.2 to 2.5 crores.

so the existing partners want to their spouses as partners to existing firm and their spouses bring agrl.lands as their capital and the firm wants to value lands at 35 lakhs and record that value in the books as incoming partners contribution.
kindly advise,

1.whether incoming partners are liable to cpital gains tax?
OR
2. CAN they say that agrl.lands are not capital assets and thereby exempted?

are incoming partners or firm going to face any problem from IT deptt. during scrutiny asst.or some other time. Kindly suggest any other solution to the existing firm to go with expansion.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
Follow

01 March 2012 if the lands are rural ag land then no CG because s 45(3) will come into play only if the asset is a cpital asset
CA MANOJ GUPTA
JODHPUR
09828510543

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

J.Vijai

mahendra zaveri

Prabhakar Manjunath

Ravikumar

Pranab Banerjee

Subscribe Now

Capital gain - capital contribution agri lands by incoming

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA