Capital gain on sale of land
This query is : Resolved
23 January 2016
Mr X has transferred his land to a partnership firm XYZ &co.
XYZ &co is converted into XYZ Pvt Ltd under Part IX conversion
Now the land is to be sold.
Whether it would be capital gain of company or Mr X?
It is to be noted that land is still registered under name of Mr X.
Is Part IX conversion valid then?
25 January 2016
Income tax law does not talk about registration, it just uses the word transfer, and it includes part performance of a contract for the purposes of section 53-A of the Transfer of Properly Act, 1882. Transfer made by Mr. X to partnership firm attracts capital gains u/s 45(3) if Mr. X transferred it as capital contribution. Book entry is sufficient here.
There is no capital gain on transfer of assets from XYZ & Co. to XYZ Private Limited as a result of succession of the firm by the company u/s 47(xiii).
However, since the XYZ private limited transferred the land the provisions of section 47A attracts.
There is no capital gain on transfer of assets from XYZ & Co. to XYZ Private Limited as a result of succession of the firm by the company u/s 47(xiii).
However, since the XYZ private limited transferred the land the provisions of section 47A attracts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
