Sale of land - tax planning

This query is : Resolved

Deepika Bhardwaj (Querist)
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06 April 2012 Dear Professionals

A company wants to sell its agricultural land in 2 or 3 companies. Please advice the best option in the hands of Company to save tax or stamp duty.

Is incorporation of 3 new companies and making them subsidiaries of that Company will solve the purpose

Please guide

thanks & regards
Deepika Bhardwaj

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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06 April 2012 You can do the same by demerging the existing company or you can also do the same by opening some subsidary company but one should remember that the subsidary should be wholly owned subsiday...

Deepika Bhardwaj

Deepika Bhardwaj (Querist)
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06 April 2012 There is a provision in the Income Tax Act that if transfer is between Holding and Subsidiary company, then Capital Gain tax would not be levied if certain conditions are satisfied.

Pls guide is there any provisions in the stamp act which exempt payment of stamp duty on transfer of property between Holding and Subsidiary.

Property is in Haryana and according Haryana Stamp Act would be applicable in the present case.

best regards
Deepika

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Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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06 April 2012 ince stamp duty is the subject matter of the state duty and as far as I know about Stamp Duty Act of Harayana..there is no exemption in this...

Deepika Bhardwaj

Deepika Bhardwaj (Querist)
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06 April 2012 thanks Mr. Vivek.. Views of others are also solicited

regards
Deepika Bhardwaj