GK
TAXES IN INDIA
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Question
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Where a partner transfers any capital asset into the business of firm,the sale consideration of such asset to the partner shall be :
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Price at which it was recorded in the books of the firm
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Market value of such asset on the date of such transfer
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Cost of such asset to the partner
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None of these
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Explanation:
Detailed explanation-1: -A capital asset is transferred by a partner to his partnership firm by way of his capital contribution (or otherwise). It is treated a “transfer” and capital gain will be taxable in the hands of the partner. The amount recorded in the books of account is taken as full value of consideration.
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