Selling of the entire properties of the company

A  Private Ltd. Company owned by a few share holders owining agricultural land and only involved in agriculture sells all it`s shares to an individual or another group of individuals what will be the implication

1. Will the agriculture land get transferred to the new owners?

2. Do the new owners have to register the property in their name?

3. How will the income be taxed on the Company and the individual share holders?

 

Replies (8)
Quick Summary
This discussion explores the implications of selling all shares in a private limited company that owns agricultural land and is solely involved in farming. Key questions cover whether the agricultural land transfers with the share sale, if new owners need to register the property, and how income will be taxed for both the company and individual shareholders. The consensus suggests the land remains company-owned, with a change in management, and selling shareholders may face capital gains tax.

1. there is. a specific procedure.
2. it takes time.
3. income will be taxed on the company.
Your query is not clear...
Please ask correctly with exact activities of the company, Share holders and ownership of agriculture land
1. obviously it will be transferred.
2. yes they hv to register in the name of the company.
3. it will be taxed as per schedule.

Thank you, Can you let us know the correct procedure to be followed.

The Company owns agriculture lands and cultivates only fruit trees. The Company`s entire income is derived from agriculture. There are only 10 shareholders.

The agricultural lands are situated in a rural area and are registered in the name of the Company.

Originally posted by : P GUNAPALAN
Thank you, Can you let us know the correct procedure to be followed.

Bro,

அவரு உங்களுக்கு சரியான ரிப்ளை குடுக்க வாய்ப்பு இல்லை. ஏன்னா, அப்படியே மேலும் கீழுமாக ரிப்ளை போட்டு points டேபிள்ல வர போராடுவாரு...

Please wait he will reply soon....

I think Only Company' s management changes this is not an M&A transaction , I understand that Private Company Owns Agriculture Land and Shareholders sell their shares to new group of individuals..So Land is still owned by company and not by individual shareholders...Selling shareholder will pay capital gain tax( if any )

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