CAPITAL GAIN

This query is : Resolved

vijay (Querist)
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05 March 2009 IN A FIRM X AND Y ARE PARTNER HAVING LAND OF 1 LAC. ON 1.10.2003 M AND N ADMIITED AS A NEW PARTNER AND VALUE THE LAND 2 LAC, AND DUE CREDIT GIVEN TO OLD PARTNER, AND PAID FOR. NOW NEW FIRM HAVE PARTNER M AND N. ON 1.8.2006 FIRM CONVERTED IN TO PRIVATE LIMITED COMPANY. WITH DIRECTOR M AND N. COMPNAY NOW WANT TO SALE LAND. WHAT WILL BE CAPITAL GAIN TAX IN THE HANDS OF FIRM ON A.Y. 2004-05 AND IN HAND OF COMPANY ON A.Y. 2009-10. THE SALE CONSIDERATION IS 10 LAC.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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05 March 2009 the cost of the land is previous owners cost when he introduce the same & the valuation taken when two partners are admitted so this is cost of improvement & capital gain is to be computed on this basis

vijay

vijay (Querist)
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05 March 2009 SIR PL. CLEAR THE CAPITAL GAIN TAX INCIDENCE IN CASE OF FIRM WHEN LAND IS REVALUED i.e., WHEN NEW PARTNER ADMITTED AND OLD PARTNER RETIRE AND IN CASE OF COMAPNY WHEN IT IS SOLD. ASSUME FIRM PUR/ LAND FOR RS. 10000 ON 1.4.81.

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vijay

vijay (Querist)
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07 March 2009 SIR PL. CLEAR THE CAPITAL GAIN TAX INCIDENCE IN CASE OF FIRM WHEN LAND IS REVALUED i.e., WHEN NEW PARTNER ADMITTED AND OLD PARTNER RETIRE AND IN CASE OF COMAPNY WHEN IT IS SOLD. ASSUME FIRM PUR/ LAND FOR RS. 10000 ON 1.4.81. THANKS IN ADVANCE