Introduce car as capital

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CAN PARTNER INTRODUCE HIS CAR (DEPRECIABLE) AS CAPITAL TO A PARTNERSHIP FIRM IN WHICH HE IS A PARTNER? ANY FORMAL DOCUMENT REQUIRED FOR THAT?

IS CAPITAL GAIN ATTRACTED? 

Replies (2)

yes he can but it should be mention in patnership deed 

 

I think partner's car is a personal asset to him and therefore not covered under the definition of capital asset. Hence, no capital gain.


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