Sale of building by a private limited to individual

This query is : Resolved

Deepali (Querist)
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10 September 2022 My client held h building in the name of a pvt ltd now they want to sell this building.
So i want to know the what would be the procedure of transfer and what would be its tax implications and how to distribute capital gain arising from this transaction to share holders or directors its a closely held pvt ltd

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2022 Pass board resolution authorising sale and authorise the directors to sign the sale deed.
Capital gains tax applicable.
Distribute the gains as divided.

Deepali

Deepali (Querist)
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12 September 2022 Sir but as per my knowledge we cannot distribute capital receipts as dividend

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 September 2022 Dividend shall not be declared out of the Securities Premium Account or the Capital Redemption Reserve or Revaluation Reserve or Amalgamation Reserve or out of profits on reissue of forfeited shares or out of profits earned prior to incorporation of the company.

Capital gains not included in the above.