Capital gain on sale of industrial land by a partnership firm

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P S & CO., (Querist)
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13 November 2023 A partnership firm was formed by 2 partners. However there are no transactions of sale and purchases till now. Industrial Land was purchased by the partnership firm and a small shed is built with power & water facility. Now the firm and is planing to sell the land for which I feel there will be capital gain tax in the hands of firm. The 2 partners may get into a new partnership and start a new business in the services or trading area. My Questions are:

1) I would like to know the type of taxes (Capital Gain Taxes & any other taxes) applicable on the sale of industrial land. How the tax liability in the hands of the firm can be reduced to the minimum?
2) Can the partners invest their shares in residential property and claim exemption u/s 54F

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 November 2023 1 Only capital gains tax applicable.
Apply indexation on cost to reduce capital gains tax.
2 No, capital gains tax has to be paid by the firm.

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