.......

This query is : Resolved

Gourav dewangan (Querist)
Follow

26 June 2021 Suppose Mr A is partner in a partnership firm ABC & Co. ABC & Co is engaged in dealing property ie purchase and sale of plot. Now Mr A transfer his personal Land as a capital contribution to the partneship firm which is received by the partnership firm as stock in trade because it is engaged in dealing land and latter this to be sold by firm as a normal course of business. My query is :-
1. What is the tax treatment in the above case.
2. Which section of income tax act can be apply.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 September 2021 1. First the tax liability over partner at the time of transfer of plot to firm
2. Secondly, business profit by firm over sale of the land as stock in trade.