Capital gain capital introduction of partner
I had purchased one land at cost of rs. 13 lacs in Oct 2011 and
Then introduced it to partnership of construction business at whatever cost prize of rs. 13 lacs in sept 2012.
Will it attract capital gain to me????
Replies (2)
As per Sec 45(3) of the I.T Act,1961 in case of introduction of capital by partner by way of transfer of capital asset to the firm then the capital gain arising on transfer is chargeable to tax in the hands of partner..
Since the land has been transferred at cost price no capital gain will arise in the hands of partner calculated as under:
Capital Gain
Sale Consideration(Amount credited in Partner's capital A/c for land brougt in) = Rs. 13 lacs
Less:Cost of acqusition Rs. 13 lacs
Therefore, capital gains = Rs. NIL
Isn't it necessary to take stamp value as minimum sale consideration at the time of introduction to partnership?
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