Property name of partner and payment partner ship firm

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This discussion addresses the accounting treatment for a property purchased by a partnership firm, where the registration and payment involve individual partners. It also explores the applicability of capital gains tax when such an asset is later transferred to a partner. The core questions revolve around how to accurately reflect these transactions in the firm's and partners' books of accounts and the tax consequences.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

04 February 2022 Sir,
A partner ship firm purchase of property registered name in partner and property value payment through on partner ship firm.
Question:
1.Above transaction treatment firm and partner account (both persons) show in books in it act
2.capital gains applicable.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 February 2022 1 Show it in books of accounts of firm as property can't be purchased in the name of the firm.
2 Capital gains applicable to the firm when the asset is given to the partner.

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Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

06 February 2022 sir, thanks reply any another question (post not found) message show all questions not accept.

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