Dear Member
FACTS:
One of my client Mr. X has purchase a immovable property (non residential) for Rs. 6 Lacs in 1993. The assets was registered in his name but by a mistake payment was shown from a fully controlled Pvt. Ltd in which he is shareholders as well as director.
Further, from the year 1993 to 2013,the company has claimed depreciation under I. tax act and as as on 01.04.2013 WDV of the said assets is Rs. 1.75 Lacs.
Now, Mr X want to gift the said assets to his grand son.
QUERY:
What is the tax implication in the hand of Mr. X as well as in the hand of the said Pvt. Ltd. Company?
If there is any tax implication, what suggestion would you like to give to minimise the tax liabilities?
Thanks
M.K. Jha
CAclubindia
