where assets of a co. are distributed to its shareholders on its liquidation,why such distribution is not regarded as transfer(in context of capital gain)?
Menu
Liquidation of company
Replies (3)
because for transfer there must be give and take relationship. here co. gives assets to shareholders and dont recieve anything from shareholders. so it cant be treated as a transfer.
Assets transfer on liquidation to their share holders is excluded in capital gain tax. under section 46(1)/47.
But it is treated as dividend under sec 2 (22).
Recent Topics :
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
- NRI Property Sale in India: TDS Rates and Key Comp
- Clarification on September 2026 PF Calculation for
- DRC-03 interest paid under CGST/SGST instead of IG
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
Related Topics :
CAclubindia
