Selling property to directors of pvt. ltd. company

Mayank (Director) (30 Points)

05 September 2011  

We have a private limited company with 2 whole time directors/promoters. The company owns a residential property. Can the company sell this property to the Directors singly or jointly? If yes, is there any restriction in terms of the price it can be sold at? In other words, does it matter if the property is sold at a profit/loss/no-profit-no-loss?

If Corporate Law is silent on this, is there any restriction from IT side? If the property is sold deliberately at a lower value than market price, does it attract any taxes?