Capital gains

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Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2017 There is a joint development agreement for development and sale of ancestral land. Four individuals formed a partnership to develop and sell their ancestral land. Who is liable to pay the capital gains tax? Can the partners transfer the land to the partnership at market value? Can the partnership bring the market value of the land as the contribution of the partners? Can the experts kindly explain how the partners and the partnership can plan the taxes in a prudent manner?

Amol S Joglekar

Amol S Joglekar (Expert)

12 October 2017 you can transfer the land at FMV as on the date of transfer.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2017 Thank you for your reply sir.
If the land is transferred at FMV, the persons who are transferring the land have to pay the capital gains. Is there any way to avoid this tax?

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2017 Thank you for your reply sir. If the land is transferred at FMV, the persons who are transferring the land have to pay the capital gains. Is there any way to avoid this tax?

Read more at: https://www.caclubindia.com/experts/capital-gains-2584964.asp

Amol S Joglekar

Amol S Joglekar (Expert)

13 October 2017 They can opt for exemptions u/s 54, 54EC etc.

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