Capital gain on sold guaranteed asset

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Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 is a limited company liable to capital gains tax if.. it has guaranteed loan of subsidiary company and it's house property is sold by bank.no money has been received by company as loan exceeds the market value of house property. subsidiary company is closed now. plz quote cases if any..

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 November 2013 yes you are liable to capital gains tax. It is wrong to say that you didn't you receive any money. Discharge of liability is also a consideration.

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 could u plz quote any such cases. i believe there mus be many of such cases.n what about set off of business loss

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 November 2013 Dear Manohar,

There may be many auctions, but rarely did assessee claimed that no capital gains accrue to him.

Often the dispute is only on the cost and the consideration..

For that you may refer:
https://law.incometaxindia.gov.in/Directtaxlaws/act2005/%5B2001%5D252ITR0880%28SC%29.htm

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 thanks nikhil.

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2013 mr.nikhil is there any planning on this case

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 November 2013 Dear Manohar,

I have shared the general views.

With regards to planning actual documents need to be reviewed. As often most planning structures get screwed because of one document or the other!

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