Transfer of property

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s k jha (Querist)
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11 February 2010 My director wants to tranfer his personal property in the name of company through power of attorney whether in this way capital gains will arise and can company capitalised this property in their books.Pls advice is there any way to save capital gains in this way but note one thing that consideration is required from company to director. pls suggest any way to save capital gains

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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11 February 2010 Yes, this will be taxable under capital gain as property is getting transfer by the way of Power of Attorney and the company can capitalise the same asset.

I hope that this property is resiential house property, if yes, then your director can gor for exemtpion given u/s 54 or 54EC.

Or, if it is land only then he can gor for exemption given u/s 54F or 54EC.

Regards!!!

CA Prashant Gupta

CA Prashant Gupta (Expert)
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11 February 2010 agree with expert
but one more way if it is long term capital asset then transfer on indexed cost. but remember this value should not below committee value or govt prescribed rate otherwise sec 56 will be applicable.

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