Sale of office premises -tax implications

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Dear Sir,

Private Limited company is having "Office Premises" under fixed assets.

This is the only asset owned by the company.

WDV as on date Rs. 2 Lakhs

Market Value/Ready Reckoner Value around Rs. 1 CR.

Now one of the Shareholder holding 50 % wants to buy this premises.

Can the assets be transferred at Book value i.e. Rs. 2 Lakhs ? instead of market value ?

Any other way to structure the above deal ?

Rajesh Poddar

Replies (1)
No. Here it shall amount to dividend u/s 2(22)(a) and amount shall be calculated on the basis of market value


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