Capital gain
This query is : Resolved
BHUPESH D. VYAS
(Querist)
01 December 2011
The assessee intends to sell off its pvt. Ltd comapny in which 100% shareholding is of his and his relatives. The Pvt. Ltd company has a industial plot in its name. The balance of the company is Like : Share Capital 1 lac. Loan from bank & shareholders(Liability) 70 lacs Plot of Land (Fixed Asset)71 lac
Now instead of having a sale deed registered fo selling the property, the assessee transferes 100% shareholding of the company to the purchaser thereby attracting capital gain only for the shareholders (Foe Sale of Shares).
I wanted to know in ths sinerio, will the company attract capital Gain. If yes, then under which section and if no then why. It possible please quote relevant sections or case laws
Now instead of having a sale deed registered fo selling the property, the assessee transferes 100% shareholding of the company to the purchaser thereby attracting capital gain only for the shareholders (Foe Sale of Shares).
I wanted to know in ths sinerio, will the company attract capital Gain. If yes, then under which section and if no then why. It possible please quote relevant sections or case laws
Aijaz Shaikh
(Expert)
01 December 2011
Capital gain tax will be attracted by shareholders and not by company.
The only tranfer takes place is of shares of the company and there is no other tranfers.
The only tranfer takes place is of shares of the company and there is no other tranfers.
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