A District Land Co Operative Bank has sold its immovable property during the course of liquidation. The sale took place through "Department of Investment and Public Asset Management under Ministry of Finance". Sale proceeds were collected by them initially and subsequently transferred to the bank account of LDB to pay their liabilities. sine there has been a substantial gain in this sale, do we need to work out capital gain and pay tax accordingly? Can we consider this LDB Bank as Government entity? And if yes, is there no tax libility?
Can a Land Development Co op Bank be considered as Government Entity and hence no capital Gain Tax ?
CA Shailesh Urdhwareshe (Sr. Partner) (95 Points)21 September 2023