ANKIT (Practice) (45 Points)
20 June 2013Hello,
Mr.Z has a property (site) and also holds shares(worth 100 lakhs) in a private company of which he is a director.
The company is not running any more.
If he transfers his shares to Mr.X for a very nominal amount ( say 1 lakh wiz the book value of his shares as on date of transfer) i.e. for a loss can he set off the loss with the capital gain he gets when he sells the property.
Please advice.
Amber Jain
(Article Assistant)
(206 Points)
Replied 22 June 2013
Yes it can be done but in the hands of Mr X there will be Income from other sources u/s 56(2)(vii) amounting to Rs 99 lacs as per the recent amendments in finance act 2012.
CAclubindia
