Partnership firms

This query is : Resolved

CA GUPTA (Querist)
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04 September 2012 PARTNER INTRODUCES LAND AS HIS CAPITAL CONTRIBUTION . NOW AFTER 20 YEARS OF PARTNERSHIP , HE WANTS TO WITHDRAW THE LAND AT THE COST AT WHICH HE INTRODUCED IT IN THE FIRM 20 YEARS AGO, CAN HE DO SO? WHAT ARE THE TAX IMPLICATIONS IN THE HANDS OF PARTNER AND FIRM ? PLEASE GUIDE

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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04 September 2012 Partners Introduces The Land.

Now They Want Land Back.
So Where The Transfer is.
It Was Lying in the Books of Partners Only Na Since 20 Years.

I Think Your Q Framing is Not as Per Your Query.
Just Make Correct it.

CA GUPTA

CA GUPTA (Querist)
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04 September 2012 land was tranferred to the books of the firm as partners capital contribution for Rs. 40000/- on 01.04.1982. he was allowed interest on capital including the value of land. now the market value of the land is Rs. 5000000/- as on 01.04.2012. partner wants to withdraw it on Rs. 40000/-. can he do so?

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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04 September 2012
Withdraw 40000 From Current Account, No Liablity Arise.

Only if They Transfer Land, Then Only Capital Gain Arise Otherwise Not.

CA GUPTA

CA GUPTA (Querist)
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04 September 2012 capital gain will arise as soon as partner withdraws land .....

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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05 September 2012 Yes, Capital Gain Arise Only When Land is Transfer.

CA GUPTA

CA GUPTA (Querist)
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05 September 2012 my ques is whether partner can withdraw the land at Rs.40000/- or Rs.5000000/-.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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05 September 2012 If Firms Transfer The Land to Partners, Then Book Value Will be Consideration.

If They Transfer The Ownership of Land from Firm to Partner Then Only Gain Will be Arise.

Otherwise They Can Withdraw Amount 50lac or 40k as What They Want From Current Account.

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