Answers On Topic: slump sale
Mr. A is a proprietor of various business having different trade name and place of business but the nature of business is same. Can he transfer the business to M/s. A Ltd company after retaining immovable property in his name so no capital gain tax is payable. Is it necessary to transfer it’s entire business with all assets and liabilities to the A Ltd company?
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That in the AY 2016-17, the assessee 'A' transferred its one undertaking to 'B' in lieu of shares of company 'B' and claimed that the trasfer is covered by slump exchange and not slump sale. However, in the various next year i.e. AY 2017-18, the assessee 'A' sold the entire share acquired on account of slump exchange to 'B' for sale consideration of a price in terms of money. From the above, it seems as if the assessee 'A' had gone for slump exchange to avoid tax on LTCG. At the end, the assessee received money in next AY as…
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The assessee is a LLP engaged in the business of construction having plot of land as a stock in trade. The cost of the said land in the books of the assessee is approximately Rs. 15 crores and the assessee is holding the said land for a period of more than 5 years. The assessee also got plan sanctioned for a housing project to be constructed on the said land. However, due to some problems in the partners, they have decided to sale the said land along with all rights and liabilities as slump sale to M/s ABC. The net…
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(Capital gain on Slump sale)