SECTION 46 AND 50B
This query is : Resolved
ANIL RAMDURG
(Querist)
24 May 2011
at the time of liquidation, assets are sold and amount realised. that amount are distrubuted to the shareholders.
what is the tax impact in the hands of company and in the hands of shareholders
It is what type of capital gain in the hands of shareholders, it is short term or long term ?
The Company is making the slum sale and whatever amount is coming on that is distributing to the shareholders. now is company liable for tax or not because of slum sale ? and what is the treatment in the hands of shareholder?
what is the tax impact in the hands of company and in the hands of shareholders
It is what type of capital gain in the hands of shareholders, it is short term or long term ?
The Company is making the slum sale and whatever amount is coming on that is distributing to the shareholders. now is company liable for tax or not because of slum sale ? and what is the treatment in the hands of shareholder?
CA PARAS BAFNA
(Expert)
24 May 2011
Q 1. at the time of liquidation, assets are sold and amount realised. that amount are distrubuted to the shareholders. what is the tax impact in the hands of company and in the hands of shareholders
*
Reply-
As the company is selling assets, the amount realised on sale of Capital Assets will be subject to Capital Gains and will be taxable in the hand of Company.
On receiving, the amount against the investment in shares, the transaction will be treated as transfer, and the amount received from the company will be treated a sales consideration received for computing Capital Gains in the hand of the
shareholder.
According to the period of holding of the respective assets , capital gain will be Long Term or Short Term
*
Reply-
As the company is selling assets, the amount realised on sale of Capital Assets will be subject to Capital Gains and will be taxable in the hand of Company.
On receiving, the amount against the investment in shares, the transaction will be treated as transfer, and the amount received from the company will be treated a sales consideration received for computing Capital Gains in the hand of the
shareholder.
According to the period of holding of the respective assets , capital gain will be Long Term or Short Term
CA PARAS BAFNA
(Expert)
24 May 2011
Q.2 -The Company is making the slum sale and whatever amount is coming on that is distributing to the shareholders. now is company liable for tax or not because of slum sale ? and what is the treatment in the hands of shareholder?
Reply- In case of slump sale, whether the Capital Gain is STCG or LTCG, will depend upon the age of undertaking sold.
Capital Gain will be taxable in the same manner as mentioned in the reply for Q. 1.
Reply- In case of slump sale, whether the Capital Gain is STCG or LTCG, will depend upon the age of undertaking sold.
Capital Gain will be taxable in the same manner as mentioned in the reply for Q. 1.
CA PARAS BAFNA
(Expert)
24 May 2011
Q.2 -The Company is making the slum sale and whatever amount is coming on that is distributing to the shareholders. now is company liable for tax or not because of slum sale ? and what is the treatment in the hands of shareholder?
Reply- In case of slump sale, whether the Capital Gain is STCG or LTCG for the Company, it will depend upon the age of undertaking sold.
Capital Gain will be taxable in the same manner as mentioned in the reply for Q. 1.
Reply- In case of slump sale, whether the Capital Gain is STCG or LTCG for the Company, it will depend upon the age of undertaking sold.
Capital Gain will be taxable in the same manner as mentioned in the reply for Q. 1.
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