Whenever there is a transfer of a capital asset by a partner to the firm by way of capital contribution or otherwise, the consideration of such transferred capital asset as per Income Tax Act, 1961 would be taken as:

CS Executive · Tax Laws · PYQS · December 2021
Whenever there is a transfer of a capital asset by a partner to the firm by way of capital contribution or otherwise, the consideration of such transferred capital asset as per Income Tax Act, 1961 would be taken as:
(A) The market value of the Capital Asset on the date of transfer.
(B) The Cost less notional depreciation of the Capital asset.
(C) The value of the asset recorded in the books of the firm.
(D) Any of the above, at the option of the assessee.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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