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Partner introduced his own land in the partnership firm as capital
19-Nov-2023 (In Property Law)
A partner introduce a land (which is registered in his own name)in an unregistered partnership firm as his capital contribution in the notarized partnership deeds(unregistered). By doing this is the land consider as a Firm property or still it would be remaining in his property (as firm and deeds is Unregistered ).
At the first instance the partnership​ deed is to be examined to ensure that Whether the same is in accordance with the provisions laid down in the governing statute.It is also to be examined Whether section 17 of the Registration Act stands breached.Without thorough perusal of of all related documents,it would be improper to suggest any legal course of action.please contact lawRato for further instructions.
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Adv. Goutam Majumder
Kolkata | 200+ Answers
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Can a partnership firm own land?
Listen to this: All assets owned by the partnership firm are jointly owned by the partners. Assets cannot be owned by the firm. The LLP may own property. The partnership firm cant hold property in their name. The partnership firm cannot hold property in its name.
Can land be introduced as capital in partnership firm?
It is not compulsory for partners to transfer property into the name of the company. The firm is not required to pay stamp duty or registration fees if a transfer deed hasnt been signed.
Is Section 50C applicable to partnership firm?
ITAT Ahmedabad ruled that section 50C cannot be applied to transactions of capital assets transfered by an assessee to partnership firm as a capital contribution. This transaction is covered by section 45(3) Income Tax Act. 23 Sept 2023
Part VII of Indian partnership act has categorically stated that registration of partnership firm is not mandatory, but there are some problem in unregistered firm, no partner can sue against the firm or partner for his own right, in this case if the owner of the land claims that it is his property it may not be proper and just but he can get the benifit of nonregistration, it is not so easy to clarify like this it would be better to talk orally as law has unbound space and has way out for everything.
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Adv. Monojit Dutta
Ranaghat | 25+ Answers
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Land as capital contribution in partnership firm example
section 45(3) of income tax act
Transfer of property from individual to partnership firm
Transfer of immovable property of partnership firm
Can partnership firm gift property
Stamp duty on transfer of immovable property to partnership firm
Can partnership firm hold immovable property
Transfer of capital asset by firm to partner
Sir
So far I understand, your question is whether an unregister firm can hold property.
In the partnership Act it is not necessary to get the partnership registered.
A firm is a juristic person can hold and sold property.
As the property has not been transfered to the name of the firm so, the property is in the name of the individual person, it transfer in the name of the firm it require to be registered.
During registration you have to follow the Registration Act and prevailing rules.
Thanks.
So far I understand, your question is whether an unregister firm can hold property.
In the partnership Act it is not necessary to get the partnership registered.
A firm is a juristic person can hold and sold property.
As the property has not been transfered to the name of the firm so, the property is in the name of the individual person, it transfer in the name of the firm it require to be registered.
During registration you have to follow the Registration Act and prevailing rules.
Thanks.
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Adv. Shiddhartha Banerjee
Kolkata | 200+ Answers
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partnership firm has to be registered with the Registrar of Firms or you will face issues later on. If a partnership firm is registered the land contributed by a partner as his capital contibrution will be considered as a firm property.. just by virtue of the registered partnership deed... but you also need to keep the original mother deed so as the partner doesn’t sell the land fraudulently and one more thing you are not required to transfer the land from partner’s name to your partnership firm as Partnership firm are not legal entity. Contact me through lawrato for further information.
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Adv. Rahul Uday Singh
Kolkata | 200+ Answers
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ITO (2007)110 ITD 525, (Jodhpur SMC), held that even though land was contributed to the firm by the partner it continued to be owned by him as the property had not been registered. Therefore section 50C would not apply. The capital gains were calculated by considering the entire value of the property.
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Adv. Chikirsha Mohanty
Delhi | 200+ AnswersCONTACT NOW
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