Capital gain capital introduction of partner

As per Sec 45(3) of the I.T Act,1961 in case of introduction of capital by partner by way of transfer of capital asset to the firm then the capital gain arising on transfer is chargeable to tax in the hands of partner..

Since the land has been transferred at cost price no capital gain will arise in the hands of partner calculated as under:

Capital Gain

Sale Consideration(Amount credited in Partner's capital A/c for land brougt in) = Rs. 13 lacs

Less:Cost of acqusition                                                                                   Rs. 13 lacs

Therefore, capital gains = Rs. NIL