Taxation of Capital Gain on Private Limited Companies

Dear Freinds.

My client is a private limited company, and he is selling the plot in the year and which he purchased 4 years ago.

1. What are the Tax rate applicable to Private Limited Companies in case of LTCG & STCG.

2. How he can tax plan the same to reduce his tax liablity.

3. whether benefit is available to private limited company u/s. 54, if yes which is the applicable section.

4. any other suggestion regarding tax planning.

Thanks & Advance,

Regards

Replies (8)

SIR YOUR ANSWERS ARE AS FOLLOWS

1. AS PER SEC-111A STCG OTHER THAN ON EQUITY SHARES WILL BE TAXABLE @ 30% FOR ASSESSES OTHER THAN RESIDENT INDIVIDUAL AND HUF I.E, FOR PVT LTD CO. IT IS FLAT 30% AS THERE IS NO SLAB BENEFIT FOR CO. LIKE IN CASE OF RESIDENT INDIVIDUALS AND HUF.                      AND FOR LTCG THERE IS FLAT 20%   TAXABILITY

2. THE EXEMPTION FOR YOUR CLIENT WILL BE AVAILABLE ONLY U/S 54 EC I.E BONDS OF NHAI OR RECL . AS IT IS A LONG TERM C.G. ( SALE AFTER 36 MONTHS- LTCG) AND U/S 54 EC LTCG IS EXEMPT IF AMOUNT IS INVESTED WITHIN 6 MONTHS OF SELLING THE ASSET 

3. TAX PLANNING CAN BE DONE IN THE ABOVE MANNER

 

PLEASE TELL THE AMOUNT OF CONSIDERATION AND NO. OF PLOTS FOR PROVIDING EASE TO DO TAX PLANNING

since the land sold is long ternm asset the gains would be taxed as LTCG.

It will be taxed at the rate of  20 %.

Such gains can be invested into Sec 54EC specified  infrastructure bonds within 6 months from the date of transfer max. upto RS 50 lakhs.

Sec 54 benefit can n/t be availed since the benefit is available   to individuals and that to from the sale of house property and not from the sale of land or plot. 

what is the rate of capital gains tax on companies. my company holds an apartment for the last 10 years. if i sell it today on behalf of the company, will the company be taxed at 20% or flat 30%

 

Need Help Urgently

 

Regards

what is the rate of capital gains tax on companies. my company holds an apartment for the last 10 years. if i sell it today on behalf of the company, will the company be taxed at 20% or flat 30%   Need Help Urgently
Sir, Please update me about tax on capital gain, for private limited company after selling it's land and building

we sold our office Pvt.ltd.co.in 2013 feb.and purchase new office in 29/03/2013 also invested in national bond

what benefit we should get, and how much the capital gain, is it 20% or 30%.please reply

Originally posted by : Prabhakar Thakur
we sold our office Pvt.ltd.co.in 2013 feb.and purchase new office in 29/03/2013 also invested in national bond

what benefit we should get, and how much the capital gain, is it 20% or 30%.please reply, said the property was purchased in 1979

 

waiting for reply

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