we have a proerty in form of land ( declared as forest land by government ) in Faridabad, Haryana, measuring 20000 sq ft. This is a unconstructed piece of land and even doesnt have any approach road. this proerty is in our companies name which is a pvt ltd company.
ARE WE LIABLE TO PAY WEALTH TAX ON THIS PROPERTY?
AND IF WE SELL THIS PROPERTY WHAT IS AN IMPLICATION OF INCOME TAX?
DO WE HAVE TO PAY BOTH WEALTH TAX TILL WE SELL IT AND INCOME TAX ON PROFIT EARNED AT THE TIME OD SALE?
As per approval of Govt as Forest land, Asset of land 'll be exempted from Wealth tax, and As Pvt.ltd company sales of Asset's profit or loss 'll be transferred to company P&L accounts. which as usual taxable from income tax.
this info as per my knowledge, still you can wait for few more expert comments.
CAclubindia
