Back in the Game (a) 25 November 2012
A Pvt company just incorporated last Financial year has incurred heavy losses.
its unfotunate that ,due unawareness of directors Return of income couldnt be Filed on 30th sep 2012,which would infer that business loss cant be carry forward.
We have checked alternative of preliminary Expenses amortisation, which is restricted to 5% of the project,which will not help much.
i ve planned to advice the company following to be tax savvy.
Sec 28-"the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession."
What if directors of company transfer jewellery for an inadequate consideration to the company.the same would be taxed in the hands of company based on above provision.
On the other hand the Directors of the company would enjoy Short term/long term capital losses,which would be eligible for carry forward.
this would require doing things on back dated effect.
So will transfer of jewellery ,would need any sale agreement or not.?
will it need any registartion with any authority.
or could be simply a inside job?
PS: i ve picked jewellery because immovable property or shares cant be transferred with back dated effect.
Advice Required on this.