Capital gains

This query is : Resolved

Praveen Kumar K (Querist)
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16 August 2011 Assessee : Private Limited Company

Purchase cost of Land (1990) :3,00,000.00
Building (1992) :20,00,000.00

Sale consideration :50 Crores

Can u please provide any tax planning to minimize the tax effect.

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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16 August 2011 Since its a company you need to first see the things and in respect of block system of the assets...

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 August 2011 In the same block if new asset of the requisite value is purchased, no capital gains will arise.

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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17 August 2011 If I am not wrong the contention of purchase of new asset in block shall not not be applicable in case of LAND as LAND cannot be depreciated.

In present situation we shall be required to bifurcate the sale consideration into land and building and off course majority of the sale value shall be towards the LAND.

I feel proper planning of hiving of the land into new company and merger of the same with existing PURCHASER company can be one of the options .

Anuj
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