The bank is right. Your wife can introduce land as capital in the firm. As per sec 45(3), amount entered in books will be deemed as sale price in the hands of the partner/sole proprietor. But if such value is less than the value adopted for stamp duty purpose, then as per sec 50c, such value adopted for stamp duty purpose will be treated as the sale price. She should transfer the land in the name of firm through a proper transfer deed. The value entered in the books will be treated as the capital contribution of the partner and the same shall be treated as cost of acquisition in the hands of firm. In case the transfer amount for stamp duty purpose is more than the actual transfer amount, then the difference will be treated as income from other source in the hands of firm.