29 February 2012
VEF ,an existing partneship firm with 2 partners with cap.of Rs.1 crore.Now they want to go for expansion of poultry farm with project cost to be around 10 crores and banks insisting that partners capital should be around Rs.2 to 2.5 crores.
so the existing partners want to their spouses as partners to existing firm and their spouses bring agrl.lands as their capital and the firm wants to value lands at 35 lakhs and record that value in the books as incoming partners contribution. kindly advise,
1.whether incoming partners are liable to cpital gains tax? OR 2. CAN they say that agrl.lands are not capital assets and thereby exempted?
are incoming partners or firm going to face any problem from IT deptt. during scrutiny asst.or some other time. Kindly suggest any other solution to the existing firm to go with expansion.
01 March 2012
if the lands are rural ag land then no CG because s 45(3) will come into play only if the asset is a cpital asset CA MANOJ GUPTA JODHPUR 09828510543
CAclubindia
