Capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2012 Dear Sir,

Would be grateful to get your clarification on following:

1)Can I sell an industrial property of my Pvt ltd company as a director of the company, after passing of the board resolution. Me and my wife are the only directors in this pvt ltd company,I have acquired this Pvt ltd company in year 2000.

2)After selling the above property I want to buy a commercial property of the same value. Am I liable to pay capital gain tax for the above transaction. The new property will be purchased in the joint name of me and my wife.

3) In case I decide to sell the present company itself with all assets and liabilities & float a new company, can I purchase the new commercial property in the name of new pvt ltd company which I propose to float. Will there be any capital gain liability

5) Should I float the new company before selling the property or can i float it after the sale.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 October 2012 sale of industrial property shall be taxed under the capital gain in the hands of pvt ltd company. Since it qualifies the test of depreciable asset, the gain will be short term.