Capital gain

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Ashutosh Kumar Jha (Querist)
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15 July 2014 Respected Members,

Mr. A (proprietor) wants to transfer his entire proprietory profession to his son Mr. X, in which a plant and machinery and other assets of Rs 25,00,000/- (approx)exist.Please help me to know, whether

a) is there any capital gain will arise in this transfer in the hands of Mr A?. If yes, then please help me with proper reference of section and rule of Income Tax Act-1961.

Thanking you
Ashutosh Kumar Jha
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Soumitra Basu

Soumitra Basu (Expert)
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17 July 2014 ADVISE MR. A. TO GIFT ALL THE PROPERTY TO HIS SON. THERE WILL BE NO CAPITAL GAIN TAX.

Ashutosh Kumar Jha

Ashutosh Kumar Jha (Querist)
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23 July 2014 Thank you for your reply sir...

What is the tax treatment in the hands of Mr. A and Mr. X for the AY 2015-16 if the entire profession will transferred by Mr. X (Proprietor) to Mr. X (Son) say on 31.08.2014 without any consideration. Is there any capital gain will arise or not?

Thanking you
Ashutosh Kr Jha

Soumitra Basu

Soumitra Basu (Expert)
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29 July 2014 Since there will be no capital gain from gift and as such question of tax does not arise at all.

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Ashutosh Kumar Jha

Ashutosh Kumar Jha (Querist)
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29 July 2014 Thanks for reply sir............

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