Quaries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2011 sir pls tell me,what is the tax treatment when a existing partner brings land as capital contribution is there is any capital gain tax & when firm get dissolve then what is again tax treatment

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
Follow

30 October 2011 1.Land transfer by partner to firm subject to Capital gain tax in hands of partner u/s 45(3),,,amount of land recorded by firm in the books of accounts is treated as sale considaration in hands of partner.

2.when any asset distributed by firm at the time of dissolve subject to capital gain in hands of firm u/s 45(4)..Fair Market value of the capital asset on the date of distribution shall be taken as sale considaration.

your welcome for more queries