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Capital gain on introduction of land by partners as capital to newly partnership firm

Shikhar Fofliya (Credit manager) (6 Points)

25 March 2021

Is capital gain arising on introducing plot of land as capital by partners coming together making a partneship firm? Is stamp duty also applicable? If yes what tax planning in this case?

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 25 March 2021

Yes there will be capital gain on introduction of land into partnership the amount of the capital asset introduced by partner shall be the full value of consideration.

Stamp duty is not applicable

Naveen (student) (334 Points)
Replied 25 March 2021

It's very tricky question involving Sec 45(3), 50C, 56(2)(x) and many High/supreme court judgements and a lot of interpretation.

If u just want an answer, then no Capital gain will arise and no stamp duty to be paid. But if u need detailed analysis then mention your mail Id. I will forward u