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?
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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 | ||
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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. |
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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
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