If a private limited company transfers plant & machinery to a proprietorship concern without consideration, than what are the implications of capital gain in the hands of private limited company?
Menu
Capital gain on transfer of asset without consideration
Replies (4)
Transferring Plant & Machinery will have no tax treatment. It will be considered as gift & therefore is not considered as transfer u/s 47.
Cost of acquisition in the hands of proprietor will be cost in the hands of previous owner u/s 49(1). Capital gain will be computed in the hands of proprietor when he will sold the P&M.
Transferring Plant & Machinery will have no tax treatment. It will be considered as gift & therefore is not considered as transfer u/s 47.
Cost of acquisition in the hands of proprietor will be cost in the hands of previous owner u/s 49(1). Capital gain will be computed in the hands of proprietor when he will sold the P&M.
| Originally posted by : Gagan Deep Singh | ||
 |
Transferring Plant & Machinery will have no tax treatment. It will be considered as gift & therefore is not considered as transfer u/s 47. Cost of acquisition in the hands of proprietor will be cost in the hands of previous owner u/s 49(1). Capital gain will be computed in the hands of proprietor when he will sold the P&M. |
 |
agreed.. :)
If there is only one P&M in block then the block become zero and balance will be teated as short term capital loss. Otherwise agreed with Gagan Deep Singh
Recent Topics :
- Query on FLAIR return
- Itr 4 problem
- Capital Gains Mismatch Due to Sale Agreement in FY
- REGARDING NRO INVESTMENT IN SHARES OF DOMESTIC COM
- DTAA benefits
- SUPPLEMENTARY AGREEMENT FOR ADDING A PARTER IN TN
- Part availmement of ITC in case of rejection of su
- Due date for itr 5 no audit with loss for fy 25 26
- Capital Gains Mismatch AIS
- Inward E-way bill from Tally Prime 7.1
Related Topics :
CAclubindia
