11 February 2010
My director wants to tranfer his personal property in the name of company through power of attorney whether in this way capital gains will arise and can company capitalised this property in their books.Pls advice is there any way to save capital gains in this way but note one thing that consideration is required from company to director. pls suggest any way to save capital gains
11 February 2010
Yes, this will be taxable under capital gain as property is getting transfer by the way of Power of Attorney and the company can capitalise the same asset.
I hope that this property is resiential house property, if yes, then your director can gor for exemtpion given u/s 54 or 54EC.
Or, if it is land only then he can gor for exemption given u/s 54F or 54EC.
11 February 2010
agree with expert but one more way if it is long term capital asset then transfer on indexed cost. but remember this value should not below committee value or govt prescribed rate otherwise sec 56 will be applicable.
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