Querist :
Anonymous
(Querist) 12 November 2010
This query is : Resolved
An agricultural land was required to be bought by company for its expansion by a new comapny. The land was registered in small lots amount paid by the company and registered in Direcotor name. In the process of the land acquisition by state govt this land was also acquired by state govt and compensation paid to director. The compensation received into Director handed over total money to company. The land acquired by the state govt handed over possession to company. what are the formalities in company law to regularise this transaction. Is any capital gains under IT applicable in the hands of Director.
s.subramanian
(Expert) 13 November 2010
Meant for CA club
soumitra basu
(Expert) 16 November 2010
Since the land is actually belong to the company though registered in the name of the Director, no capital gain shall arise in the hands of the director. The company has to pay the capital gain tax, if any. Since the purchasing of land was entered in the books of the company there is no such problem in this transaction. The company has only to pass a Board Resolution to regularise the transaction.
Khaleel Ahmed
(Expert) 18 November 2010
I agree with Mr. subramanian.
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