Capital gains
This query is : Resolved
16 August 2011
Assessee : Private Limited Company
Purchase cost of Land (1990) :3,00,000.00
Building (1992) :20,00,000.00
Sale consideration :50 Crores
Can u please provide any tax planning to minimize the tax effect.
Purchase cost of Land (1990) :3,00,000.00
Building (1992) :20,00,000.00
Sale consideration :50 Crores
Can u please provide any tax planning to minimize the tax effect.
16 August 2011
Since its a company you need to first see the things and in respect of block system of the assets...
17 August 2011
In the same block if new asset of the requisite value is purchased, no capital gains will arise.
17 August 2011
If I am not wrong the contention of purchase of new asset in block shall not not be applicable in case of LAND as LAND cannot be depreciated.
In present situation we shall be required to bifurcate the sale consideration into land and building and off course majority of the sale value shall be towards the LAND.
I feel proper planning of hiving of the land into new company and merger of the same with existing PURCHASER company can be one of the options .
Anuj
+91-9810106211
femaquery@gmail.com
In present situation we shall be required to bifurcate the sale consideration into land and building and off course majority of the sale value shall be towards the LAND.
I feel proper planning of hiving of the land into new company and merger of the same with existing PURCHASER company can be one of the options .
Anuj
+91-9810106211
femaquery@gmail.com
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