Vipin Kumar 30 March 2020
we have a partnership firm in which one of the existing partner is contributing land as capital to the firm through memorandum of understanding
the land value exceeds 50 lakhs
is it neccassary to deposit TDS under 26QB
Thanks in advance
Miss Mansi Bhojani (Practicing Chartered Accountant) 31 March 2020
As per section 45(3),if a partner contributes an immovable property or capital asset in form of capital contribution the same is treated as transfer and capital gains provision apply. Therefore, it is considered sale and if the value exceeds Rs 50 Lakhs then TDS provisions do apply to deduct TDS @ 1%.