Krishna Prasad (Partner) (260 Points)
09 December 2010Dear Professional colleagues
I am Krishna Prasad Chartered Accountant based at vijayawada. I have a doubt whether transfer of a capital asset by a share holder to the company be treated as transfer or not. Suggest me whether such transfer is subject to capital gains tax or not.
CA Sahil Singla..
(Service Tax )
(3746 Points)
Replied 09 December 2010
it would attract capital gains in the hands of shareholder since individual & CO. are two different persons in the eyes of law...but if this capital asset is a personal effect of shareholder then there would not be any Capital gains
CA PuRvI M!$rA
(-)
(2260 Points)
Replied 09 December 2010
yes it will b treated as transfer...n attract CG
CA Chirag Haraniya
(Chartered Accountant)
(902 Points)
Replied 09 December 2010
| Originally posted by : sahil singla | ||
 |
it would attract capital gains in the hands of shareholder since individual & CO. are two different persons in the eyes of law...but if this capital asset is a personal effect of shareholder then there would not be any Capital gains |
 |
agree with sahil........
Max Payne
(employed)
(2574 Points)
Replied 09 December 2010
Certainly amounts to transfer within the meaning of section 2(47).
If it is a personal effect, then it is not a capital asset as defined in section 2(14), and taxability will not arise.
I think you have in mind the query if section 47(xiv) benefit can be claimed on transfer of asset.
No..
It stipulates the takeover of an proprietorship concern by a company, which is not the case here.
CA Deepesh Ruhela
(Keen to Learn)
(3271 Points)
Replied 10 December 2010
Any transaction whether by way of
the capital gains will arise when the asset is sold by the assessee
.
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