One of my clients, has a soleproprietorship concern, trading in certain goods, in his own name.
He also has a partnership concern , with his wife & son as partners, manufacturing and trading the same goods as that of soleproprietorship concern.(Ratio 50:50)
My Query:-
How to comply with section 47 & 48 so as to save the capital gains tax?
Both the concerns would be transferring all there assets & liabilities to the new company. But how to decide about the shareholding pattern?
Section 47 says that in the case of a proprietorship being converted the sole proprietor should have 50% of shares;
It also says that in the case of a partnership "the aggregate of the shareholding in the company of the partners of the firm is not less than 50% of the total voting power.
NOW if 50% is taken by the father, ans the rest 50% by the wife and son, how will the daughter in law subscribe to shares.
CAclubindia
