Pvt Ltd company buy residential plot and sell to director after some years

651 views 1 replies

Can' a family owned Pvt Ltd company buy a residential property and claim depriciation on it?

Can it sell to any of the 3 directors after a period of say 5 years at depriciared value or at loss?

What are the tax implications both for company and director?

Replies (1)
Company can't provide trusteeship services unless otherwise include in object, Private company by vary nature deems to be very closely held company ( except in certain circumstances), If property is used for company's own objective or as registered/ corporate office then you can do it and also claim depreciation per IT act , Selling of property to director is Related partly transaction u/s 188 so board approval is required , if Property sold is less than FMV , then it shall be not at arm'.s length basis for which shareholders approval is also required , For IT act, taxability on disposal as per FMV and Valuation Certificate ( also required In EOGM) and capital gain shall be calculated on that basis , If difference between FMV and sale price to director > Rs.50,000 then it will added as taxable income in hand of buyer , so plan accordingly...
[ Disclaimer On act upon it ]


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details