Dear Members,
A partner of a Firm brings Land as his share of Capital. Will this transaction be considered as a Transfer U/s 47 of the IT Act and also whether the Land Deeds have to be mutated.
Kindly advice on the matter,
Regards
Karthik
Dear Members,
A partner of a Firm brings Land as his share of Capital. Will this transaction be considered as a Transfer U/s 47 of the IT Act and also whether the Land Deeds have to be mutated.
Kindly advice on the matter,
Regards
Karthik
Yes by virtue of section 45(3) it will be considered as transfer made to firm. In that case value of land recorded in the books of account of the firm on the date of transfer will be taken as full value of consideration and from it the indexed cost of acquisition will be substracted.
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