While forming a New partnership firm partners introducing their own assets into the newly formed partnership firm as Capital contribution..Whether it will attract capital gain tax..
JAGATHISHKUMAR (AUDIT EXECUTIVE) (43 Points)
04 February 2013While forming a New partnership firm partners introducing their own assets into the newly formed partnership firm as Capital contribution..Whether it will attract capital gain tax..
Vaisakh Ayyappan Prakash(VAP)
(student)
(474 Points)
Replied 04 February 2013
Sec. 45(3): Transfer of capital asset by the partner to the firm as capital contribution is regarded as transfer. The amount recorded in books of accounts of the firm is considered as sales consideration.
so capital gain arises
hope it helps
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