In my considered opinion, the answer to your question would depend on the facts of the case.
If the immovable property is being transferred formally from a partner’s name to the partnership firm’s name or in joint names of the partners, and there is a regular transfer / conveyance deed, etc., then of course, payment of registration fee, stamp duty, etc., would be required.
However, if the immovable property continues to be in the personal name of the partner and is not formally transferred to the firm’s name through a conveyance deed, but it is pooled in the stock or capital of the partnership firm (which may still be covered as firm’s property under Section 14 of the Partnership Act, 1932) then there would be no need for the registration fee and stamp duty, since there is no formal conveyance deed and the property still continues to be in the personal name of the partner.
This is what is my understanding the law on this issue.
It may also be relevant to reproduce the provisions of Section 45(3) of the Income Tax Act, 1961, for the purposes of tax treatment, which lays down as under:
“(3) The profits or gains arising from the transfer of a capital asset by a person to a firm or other association of persons or body of individuals (not being a company or a cooperative society) in which he is or becomes a partner or member, by way of capital contribution or otherwise, shall be chargeable to tax as his income of the previous year in which such transfer takes place and, for the purposes of Section 48, the amount recorded in the books of account of the firm, association or body as the value of the capital asset shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset.”
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
.
