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vishal (proprietor)     01 May 2012

Can a pvt ltd co. give land to its shareholder in compromise

RESPECTED MEMBERS

THE MATTER IS BETWEEN A FAMILY HELD PRIVATE LTD COMPANY AND ONE OF ITS SHAREHOLDER WHO HAS BEEN LITIGATING WITH THE COMPANY FOR A VERY LONG TIME, TO GET OVER WITH THE LITIGATION THE COMPANY  WANTS TO COMPROMISE  FOR THIS THE CO. HAS  TO GIVE A PORTION OF LAND TO THE SHAREHOLDER AND THE SHAREHOLDER WILL FORGO HIS RIGHTS AS A SHAREHOLDER .WHAT IS THE SIMPLE WAY OF DOING THIS LEGALLY BY THE COMPANY KEEPING IN MIND THAT THE CAPITAL GAIN LIBILITY DOES NOT COME ON COMPANY. KINDLY ADVICE  



Learning

 6 Replies

SURESH GODBOLE (ADVOCATE)     01 May 2012

Yes 

 

No Bar

 

As one of the Shareholder can hold paid Position of MD or Executive Manager

 

So the case is same

 

The Co can lend or take loan from shareholder and pay intt.

 

So is the case

S Jadhav 98336 98330 (Jadhav & Associates)     23 May 2012

If there is a transfer of any immovable property, requisite stamp duty has to be paid and the document registered.

For Capital Gains tax calculations you will have to provide details about the date of purcahse and the purchase price at the time and the date and rate at which it is being sold.

You may take help of an expert to reduce the Cap gains tax.

S Jadhav


(Guest)

is the land held by company for more than 12 months?

if yes, you just invest the capital gain that arises from transaction into long term bond issued by NHAI/ rural electrification corporation(REC) u/s 34EC subject to the following condition:

1] the transfer must be made in the previous year.

 

2] you should invest within 6 months of sell.

 

3] you should get exemption upto the amount of investment.

 

4] you cannot sell the bond within 3 years.

 

my advice: you invest entire sale proceed into those bond to avoid capital gain.

S Jadhav 98336 98330 (Jadhav & Associates)     25 May 2012

SEc 54 is applicable only to Individuals and HUFs while sec 54 EC is applicable ot all assessees.

S Jadhav

vinayaka (manager)     19 April 2013

not clear answers

uttamtibrewal@yahoo.com (Advocate)     25 June 2014

dear Vishal ....

yes land can be given to shareholder .... and for capital gain you need to provide details so that calculation can be done and better answer can be provided


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