malli and Nag (CA) (119 Points)
29 January 2010
Amir
(Learner)
(4016 Points)
Replied 29 January 2010
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.
C.Balaji
(Learner)
(1867 Points)
Replied 29 January 2010
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???
Amir
(Learner)
(4016 Points)
Replied 29 January 2010
Dear Balaji,
Sec 45(4) specifically provides to take FMV in the present case.
C.Balaji
(Learner)
(1867 Points)
Replied 29 January 2010
SSS.....agree with u Mr.Amir.....
Thanks for that quick and immediate response....
Ricky Chadha
(student)
(121 Points)
Replied 30 January 2010
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!
Sanjeev SAINI
(Chartered Accountant)
(337 Points)
Replied 30 January 2010
C.Balaji
(Learner)
(1867 Points)
Replied 30 January 2010
Mr.Sanjeev
Please give your opinion in English....don't know Hindi....please......
Anil SINGH
(Article Assistant)
(34 Points)
Replied 30 January 2010
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
CA PALLAVI VOHRA
(Learner)
(140 Points)
Replied 30 January 2010
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.
Sanjeev SAINI
(Chartered Accountant)
(337 Points)
Replied 30 January 2010
CAclubindia
