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Question ID : 41071

Partner Contribution

A partner contributes his land purchased at stamp duty value Rs 5 lakhs last month. This is recorded in the books of the firm by a journal entry as his capital contribution for R 5 lakhs. My query is 1) Whether any registration by paying stamp duty is required 2) a factory is proposed to be constructed on the land. If the factory is sold after few years who will be taxable for the land. Firm or Partner.

Posted by T.R.S. PATHY SENTHIL on Jun 12, 2021

Filed Under DIRECT TAXES

Answer ID : 81237

1. Stamp duty paid is to be recorded in the books of the firm 2. Firm is a person under Income Tax Act so capital gain on sale of factory after indexation is to be paid by the firm as per profit sharing ratio

Posted by Hari Beldona on Aug 24, 2021