Dear 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.
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
yes it will b treated as transfer...n attract CG
| Originally posted by : sahil singla | ||
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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 |
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agree with sahil........
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.
Any transaction whether by way of
the capital gains will arise when the asset is sold by the assessee
.
CAclubindia
