Capital Gains Tax on Partner's Asset Transfer to Firm: Key Provisions in Sections 45(3), 50C, and 56(2)(viia)

Section 45(3) of the Income Tax Act addresses capital gains tax on the transfer of a capital asset by a partner or member to a firm, association of persons (AOP), or body of individuals (BOI). The recorded value in the firm's books is considered the sales consideration. If the stamp duty value exceeds this amount, it is used as the sales price under Section 50C. When shares of a private or unlisted company are contributed, Section 56(2)(viia) applies, taxing the difference if it exceeds 50,000. The transaction's genuineness is crucial to determine the applicable provisions, especially when assessing potential tax evasion.