Tax saving on asset sale

 

My dad, due to his old age made me proprietor of his business (Factory). Also there is a land in his name (company name) and he got my and other family members name in land record books of Tehsildar's office.

 

Now my CA said that both this transaction will be considered as asset sale and hence my dad shall have to pay tax on them. He has asked to get valuation of factory as well as the land and accordingly my dad will have to pay tax in tune of some 4-5 Lakh. Is this true ? Is there any way to avoid paying this tax ?

 

Please help.

 

Regards

Replies (5)

What documents were used in order to transfer the names in the land records?

Originally posted by : Mihir
What documents were used in order to transfer the names in the land records?

 

Only 'Legal Heir Affidavit' was given with a request to enter names of the heirs. 

Hi Prasham,

u/s 47(iii) if a capital asset is transferred in kind by gift, will or irrevocable trust then it is not regarded as transfer. There shall not be any capital gain.

Agree with karthik capital gain will be exempt as the above is not a transfer u/s 47

There is no sale here. If there is no sale, then no transfer, and no transfer, then no capital gain. You have only added names of your heirs in the records.

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