Transfer of name of owner of land from individual name to sole proprietorship concern or OPC

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Respected Madams and Sirs,

I have a query regarding law, there is an individual who owns a piece of land in his own name alone, He wishes to transfer this piece of land from his own personal name to the name of his own sole proprietorship concern. 

Do you suggest he transfer from his own name to a OPC of his own or any other form of entity? 

What are the various implications here about the perspective of Direct-Tax, Stamp Duty, Documentation, etc

Your advice would be greatly appreciated.

Replies (3)

you can transfer to OPC. being a separate entity, the OPC will have to remit the consideration for the land ie in form of shares or cash. Being a related party transaction, it has to be done on arm's length basis. The stamp duty etc would apply as normal. Since this would count as transfer of a capital asset, there would be capital gains consideration for the individual.

Proprietorship is not separate from individual. Hence, such a transfer is not possible.

Thank you very much for your response Nikhil ji.

Regarding same query if the sole proprietor already shows this piece of land as Stock-in-Trade in his own books, what would be the implications.

The sole proprietor wants to receive money regarding the land in the name of business, what would be the most suitable thing to do looking at that and stamp duty?

Your advise would be very much appreciated.

 

You can get the money in the business bank account very normally. There is no need to transfer the land from individual to any entity.

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