Whether capital gain tax should be attracted or not?

This query is : Resolved

Ritesh (Querist)
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13 September 2011 Mr. X had 20 acres of land worth Rs.20lacs purchased on 10th May,1996 in his Individual name.He creates a proprietorship firm on 12th November,2010 for starting a new buisness.He transfers this land in the proprietorship firm on 12th nov,2010. The registered value of the land on this day is Rs.42lacs. Whether Capital Gain Tax would be Attracted or not?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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13 September 2011 Attracts.
OM SAI SRI SAI JAI JAI SAI

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 September 2011 Section 45(3) of the Income Tax Act shall be applicable. The transfer will attract capital gain in the hands of the partner.

The value recorded in the books of the partnership shall ne the sale consideration.

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