We have a private limited company that we want to close. The business is bad and impacted. If we sell the only property held by a Private Limited company and pay all obligations (capital gain tax, supplier payments, and any loans) we will be left with about 1 crore.
When this money is distributed to shareholders (5 shareholders) - are they required to pay tax on it or it is just theirs to keep with no tax ? There are 5 shareholders of the company and we wanted to confirm if there is any tax to be paid on this amount.
Thank you for any guidance.
CAclubindia
