saurabh (nil) (52 Points)
02 November 2012If a New company is formed to takeover an existing Old company(s), then is Capital Gain on Transfer of Asset to Newly formed Company liable for Tax..?
If yes, then what are the Exemptions available for Investing the Said gain..?
Kindly Reply..
Saket Sinha
(Student)
(129 Points)
Replied 02 November 2012
If transfer is done by complying the provisions of sec 47 of Income Tax Act 1961 then capital exempted.
saurabh
(nil)
(52 Points)
Replied 02 November 2012
| Originally posted by : Saket Sinha | ||
 |
If transfer is done by complying the provisions of sec 47 of Income Tax Act 1961 then capital exempted. |
 |
Is there any exemption available u/s 54 for investing the gain to the Newly formed Company..?
Saket Sinha
(Student)
(129 Points)
Replied 02 November 2012
Dear Saurabh
Capital gains arises when there is a transfer of capital asset. Capital gain shall be payable by transferor.
Sec47 govern those situations where transfer are not regarded as transfer in the hands of transferor therfore capital gain does not arise in these cases. These are exempt from capital gains
Sec 54 provides for exemptions which means that if capital gain arises from tranfser then only you can clain exemption by complying the provision of sec54
saurabh
(nil)
(52 Points)
Replied 02 November 2012
you are saying no tax liablity is payable in the hands of tranferor as well as transferee..?
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