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Partnership Firm Taxability

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(Querist)
13 June 2020 10 person acquired the Agricultural land which is now been converted into NA and after NA they want to construct the Residential bunglows on such NA land.

1) They want to start the partnership firm for the purpose of construction. How land will be transfer by the partners to the firm whether as a Capital contribution or by way of sale deed ?
2) if it is by way of capital contribution then how all this Residential Bungalows sold to future bookings parties as land is in the name of partners?
3) if it is by way of sale deed then what value ? Is it necessary to be the FMV OR ANY OTHER VALUE WHICH IS LESS THAN FMV
4) CAPITAL GAIN IN ABOVE BOTH THE SITUATIONS
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
13 June 2020 1 Land will be transferd by the partners to the firm as a Capital contribution.
2 Partners has to execute sale deed.
3 NA.
4 Capital gains arise to parners on the date of land conversion payable on the date of sale of constructed house.
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