Query
This query is : Resolved
30 April 2014
plz can u give in short application of sec 50c (head capital gain)??
plzz
01 May 2014
see if this helps:
https://www.caclubindia.com/articles/the-real-effect-of-section-50c-of-the-income-tax-act-1961-8665.asp#.U2FCqKIVe8A
https://www.caclubindia.com/articles/the-real-effect-of-section-50c-of-the-income-tax-act-1961-8665.asp#.U2FCqKIVe8A
01 May 2014
It is well settled that a company and its
shareholders are different persons. It has been
held that even in case of fully owned of
Government Company, the company is different
from government and it cannot be called a
department of government. Even a fully owned
state Government company will be liable to pay
local tax imposed by concerned state government
and it cannot deny liability for the reason that the
state government owns full share capital.
Likewise a fully owned company of central
Government will also be liable to pay income-tax
to the Central Government though entire share
capital is held by the Central Government.
Similarly a private limited company is distinct
from its shareholders. Even a person may
beneficial hold entire share capital of a company,
in that case also property of company will not be
property of 100% shareholder.
A company and its shareholders are distinct
persons. A company's property, liabilities,
incomes, losses, etc., are not those of its
shareholders. The contract between a company
and its shareholders is governed by the
memorandum and articles of association of the
company, and the prospectus or other document
constituting terms and conditions of issue of
shares or other securities.
Number of shareholders has increasing and they
are widespread not only within India but also
abroad. The gap between a Company's
management and shareholders is also widening
and in any case is capable of widening on
changes in circumstances.
Therefore, when a person or group of persons
transfer say even hundred percent share capital of
company, he transfers only shares and not the
property. This is because the shares are only
what the shareholder owns. The property is
owned by company and not by shareholder.
Selling of property can only be by company and it
will be decision of company and not of
shareholders. A shareholder can transfer his
shares independent of other shareholders.
The property owned by company cannot be
transferred by shareholders though with transfer
of shares control over company may go to the
transferee of shares, but property will remain
property of company.
shareholders are different persons. It has been
held that even in case of fully owned of
Government Company, the company is different
from government and it cannot be called a
department of government. Even a fully owned
state Government company will be liable to pay
local tax imposed by concerned state government
and it cannot deny liability for the reason that the
state government owns full share capital.
Likewise a fully owned company of central
Government will also be liable to pay income-tax
to the Central Government though entire share
capital is held by the Central Government.
Similarly a private limited company is distinct
from its shareholders. Even a person may
beneficial hold entire share capital of a company,
in that case also property of company will not be
property of 100% shareholder.
A company and its shareholders are distinct
persons. A company's property, liabilities,
incomes, losses, etc., are not those of its
shareholders. The contract between a company
and its shareholders is governed by the
memorandum and articles of association of the
company, and the prospectus or other document
constituting terms and conditions of issue of
shares or other securities.
Number of shareholders has increasing and they
are widespread not only within India but also
abroad. The gap between a Company's
management and shareholders is also widening
and in any case is capable of widening on
changes in circumstances.
Therefore, when a person or group of persons
transfer say even hundred percent share capital of
company, he transfers only shares and not the
property. This is because the shares are only
what the shareholder owns. The property is
owned by company and not by shareholder.
Selling of property can only be by company and it
will be decision of company and not of
shareholders. A shareholder can transfer his
shares independent of other shareholders.
The property owned by company cannot be
transferred by shareholders though with transfer
of shares control over company may go to the
transferee of shares, but property will remain
property of company.
01 May 2014
Sanket? What? how is it related to Section 50C?
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