Query regarding capital asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2011 a plot of land purchased by partnership firm and registered in the name of partner. Some amt paid by partner is shown as loan in the books of partnership firm.
Can the property be registered in the name of partner ?
Any effect under income tax as why the above property is not shown in the individual book of partner though reg. in the name of partner ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 December 2011 Properties are registered in the names of partners only.
.
In IT , it can be explained that the asset is owned by the firm through its partners.

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2011 whether it required any resolution or deed btwn firm and partner

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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19 July 2025 Can property be registered in partner’s name? Yes, common practice for partnership firms.
Accounting treatment for partner’s payment? Shown as loan from partner to firm.
Why not shown in partner’s books? Property belongs to firm; partner holds legal title only.
Tax impact? Taxed in firm’s hands; partner’s name is just a legal formality.
Need for resolution/deed? Recommended to document arrangement clearly.

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