Capital Gain on Transfer of Shares and Mutual funds to a partnership firm as a capital contribution.
This query is : Resolved
VIJAYRAJ L JOGANI
(Querist)
21 February 2025
Respected Sir
As per section 45(3) of the Income Tax Act 1961, When an individual(Partner) transfers a capital assets (Stocks, Mutual fund, Real Estate, etc.) to a Partnership Firm as a capital contribution, it is considered a 'transfer' under capital gain tax provision and chargeable to the tax when such transfer take place. Value recorded in the books of the firms is consider as a full value of consideration.
Our question is on which value firm will recorded such assets (Stocks, MF, Real Estate) on Fair Market Value of the Such assets or cost of acquisition of the individual (Partner).
As per section 45(3) of the Income Tax Act 1961, When an individual(Partner) transfers a capital assets (Stocks, Mutual fund, Real Estate, etc.) to a Partnership Firm as a capital contribution, it is considered a 'transfer' under capital gain tax provision and chargeable to the tax when such transfer take place. Value recorded in the books of the firms is consider as a full value of consideration.
Our question is on which value firm will recorded such assets (Stocks, MF, Real Estate) on Fair Market Value of the Such assets or cost of acquisition of the individual (Partner).
Dhirajlal Rambhia
(Expert)
21 February 2025
Fair Market Value.
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