Inadequate consideration for transfer of cap asset for firm

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meet savla (Querist)

22 February 2014 An immovable property being a capital asset is being sold by a partnership firm, the sale consideration is less than the stamp value of the property, what will be the tax implications?
Section 56(2)(vii) is applicable to only individuals and HUFs, what about the partnership firm??

Nikhil Kaushik

Nikhil Kaushik (Expert)

23 February 2014 well there is no provision for the firms. however the transferor shall be covered under normal capital gains provision.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

25 August 2014 dear sir,
pls refer to sec 50 C, if the sale consideration is less than stamp value than assessee has to pay capital gain gain tax on stamp value.
sir, sec 56 (2)and 50 c has different meaning. this section is for receipt of property without or inadequate consideration and not for sale of property.
it is interesting to note here that if a individual/huf sells any immovable property without adequate consideartion , than seller has to pay tax on difference of stampp value and sale consideration u/s 50 C and buyer has also to pay tax on the same difference u/s 56 (2)

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