TAX IMPLICATIONS IN CASE OF BUSINESS ASSET TRANSFERRED FROM COMPANY TO DIRECTOR

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There is a Private limited company which needs to winded up and the directors want to transfer the property of the company in their name.

So please suggest me what are the procedures to be followed in such case.

On whom will the tax liability arise- Company OR the Directors ?

Replies (1)
This will be treated as normal sale transaction and taxed accordingly if you transfer property to director , as property of Pvt Ltd Co. belongs to all the shareholders of the Co. rather than a director.

however, when you are liquidating the company and
(1) if all the shareholders are directors or
(2)if you want to transfer property to all the shareholders,
Then there will be no capital gains for the company. However you will need to pay capital gains tax on the amounts received in the individual capacity.
Hope this helps
Thank you


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