Capital gains tax

it would attract capital gains in the hands of shareholder since individual & CO. are two different persons in the eyes of law...but if this capital asset is a personal effect of shareholder then there would not be any Capital gains 

this will amount to transfer

yes it will b treated as transfer...n attract CG

this will amount to transfer and not capital gains...

the capital gains will only arise when the asset is sold by the assessee leading to capitakl gains or loss as per the situation..!!!

Originally posted by : sahil singla
	it would attract capital gains in the hands of shareholder since individual & CO. are two different persons in the eyes of law...but if this capital asset is a personal effect of shareholder then there would not be any Capital gains

 agree with sahil........

Certainly amounts to transfer within the meaning of section 2(47).

If it is a personal effect, then it is not a capital asset as defined in section 2(14), and taxability will not arise.

I think you have in mind the query if section 47(xiv) benefit can be claimed on transfer of asset.

No..

It stipulates the takeover of an proprietorship concern by a company, which is not the case here.

Any transaction whether by way of

• becoming a member of, or
  
• acquiring share in company, then it trnsfer u/s 2(47)
  

the capital gains will arise when the asset is sold by the assessee

.