CAPITAL GAIN-FIRM

Dear MALLIKARAJUNA,

Firm has to pay Capital gain on "Tansfer of land" Sale consideration would be "FMV of Land on the date of Transfer"

In the hands of Partner there will be no tax treatment upon receipt of land.

agree with Mr.Amir

According to me, Firm has to pay capital gains tax......

But Mr.Amir I have a doubt in this....

can't we take the Book value???

Dear Balaji,

Sec 45(4) specifically provides to take FMV in the present case.

SSS.....agree with u Mr.Amir.....

Thanks for that quick and immediate response....

hi!

there is still a debate in the court regarding Retiring partner will be included u/s 45(4) or not!

please check this link

https://www.itatindia.com/Datafolder/flaash/flaashbn14-10-09_3.htm

and yes friends before answering think once!

Mr.Sanjeev

Please give your opinion in English....don't know Hindi....please......

Mr. Amir is Right

bcos Book Value is taken at the time of Admission of a partner as per sec 45(3) for CG of Partner

I agree with Mr. Amir.

But please check once whether the  land  can be classified as a rural agriculture land. If it can, then no capital gain on its transfer.