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Capital asset transferred to discharge liability

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Does Transfer of capital asset to creditor attract capital gains?

If yes what will be the consideration for the company and cost for the creditor??
Replies (6)
transfer of capital asset to creditors is treated as transfer as per section 2 (47) of income tax act
it will attract capital gain tax
full value consideration is the consideration received or receivables by the transferor in lieu of assets, which he transferred
in the above case it is amount settled between debtor and creditors

extremely regret for commenting on section 46
please give me some time to correct it
Thanks
Cost of acquisition for the creditor will be the amount settled right?
Or will it be the FMV of asset?
cost of acquisition for the creator will
When you will see the Definition of Transfer u/s 2(47) then you could clearly see there that Transfer includes Exchange as well. So when you settle with your creditor against your assets then it will be treated as Transfer.

Sale Consideration for Co:- It will be the Value of Creditor against which the Assets has been transferred.

COA for Creditor:- The Value of Sale Consideration for Company shall be the COA in hands of Creditor.

Thanks, Be Helpful to One Another..!
Very Clear Answer by Mr. Nitesh & Md. Imran. 👏👏👏
Thank you very much😊


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