Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2013 I OWNED A PLOT WHICH IS PURCHASED BY ME DURING THE YEAR 2007-08. FOR RS 500000/- NOW I WANT TO TRANSFER THIS PLOT IN TO PRIVATE LIMITED COMAPNY DURING 12.13 FOR RS 1000000/-IN WHICH I AM DIRECTOR. AFTER TRANSFERING PLOT IN TO COMPANY, COMPANY CONSTRCTS A MULTY STORY BUILDING. WHAT AM I DO, WHAT IS THE TAX LIABITITY BORN BY ME AND WHAT IS THE STATUS OF PLOT IN THE COMPANY.
AND WHAT IS THE AMOUNT ON WHICH I WILL PAY CAPITAL GAIN AND WHAT IS THE PROCEEDURE TO TRANSFER IT IN TO COMPANY WHETER I WILL WRITE A AFFIDEVIT OR OTHERWISE, PLEASE ANSWR

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2013 YOU HAVE TRANSFERRED THE PLOT TO THE COMPANY. THIS WAS YOUR CAPITAL ASSET AND ON SUCH TRANSFER YOU ARE LIABLE TO PAY TAX ON CAPITAL GAINS ARISING ON SUCH TRANSFER.
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FOR COMPANY IT WILL BE A TRADING ASSET AND THE PROFIT ON SALE OF FLATS IN MULTY STORY BUILDING AS WELL AS THE SHARE IN UNDIVIDED LAND WILL BE TREATED AS BUSINESS INCOME.
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