capital gain share transfer
This query is : Resolved
swaminathan
(Querist)
05 January 2010
dear all
compay X is a private limited. it has 5 share holders the share holders wanted to distribute the share within them self so taht individual share holding is less than 10%. they are going to transfer the share at cost price between them.
1) Whether capital gain will come for this transaction
2) Since the cost price and sale price is same whether AO invoke sec 55A at the time assessment
kindly help on this
compay X is a private limited. it has 5 share holders the share holders wanted to distribute the share within them self so taht individual share holding is less than 10%. they are going to transfer the share at cost price between them.
1) Whether capital gain will come for this transaction
2) Since the cost price and sale price is same whether AO invoke sec 55A at the time assessment
kindly help on this
06 January 2010
If there is no difference between the cost of transfer and the sale consideration the capital gains would not arise and once the captila gain is nil then tax on that nil gains will be always nil, hence no capital gains arisies., unless the transfer would have at a price other than the cost, then the question of loss or profit would have arisen..
swaminathan
(Querist)
06 January 2010
whether sec 55A will be invoked by assessing officer kindly answer to this question also
Dhirajlal Rambhia
(Expert)
02 July 2023
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