How to value land brought in by partner ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2011 Sir,
If a partner brings in land in the firm, my queries and options are as below :
1) Treat it as his capital contribution. But the question is at what value it will be introduced in the firm ?
2) Treat it as Land let out to the firm and take rent from the firm. But then can partner do so ? and can he let it out without as rent free ?
Which option will be better from the point of tax planning ? Please guide. Thanks in Advance.

Guest

Guest (Expert)

02 February 2011 There can not be thumb rule