capital gains

vivek ananda (student) (173 Points)

14 November 2009  

as per sec2(47) of capital gains, if a company transfers its capital assets to a 100% subsidiary there shall be no capital gains tax. but how can there be a 100% subsidiary? there must be a minimum of 2 or 7 members for private or public company respectively. for a company to be 100% subsidiary, all of the share capital must be held by one person only