Capital gain
This query is : Open
08 November 2016
If a holding co transfers a capital asset to 100% subsidiary, and the subsidiary sells the asset before 8 years, will the exemption of capital gain be withdrawn?
09 November 2016
As per section 47, if holding company transfers any capital asset to its 100% subsidiary company and provided subsidiary company is an indian company, it will not be treated as transfer. No condition of transfer by subsidiary company with in 8 years lies there. So subsidiary company can transfer it any time.
09 November 2016
The law states that exemption is withdrawn if 1) the subsidiary ceases to be wholly owned within 8 years of transfer 2)if asset is converted into or deemed to be converted into stock within 8 years of transfer.
09 November 2016
The law states that exemption is withdrawn if 1) the subsidiary ceases to be wholly owned within 8 years of transfer 2)if asset is converted into or deemed to be converted into stock within 8 years of transfer.
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