Capital gains

POSTED BY rajeeva.ranjan ON January 9, 2012 4:05 pm ONE COMMENT

If I have a land and residential builiding on that land for last 10 years in my pvt ltd companys’ name, (100 % shares with me, my wife and mother), land and building shown separately in company’s balance sheet and if depreciation charged only on building, but not on land, will transferring the property to my name (Director of the firm) will result in any short term or long term capital gain for me?

One reply on this article “Capital gains”

  1. Dear Rajeeva.ranjan, Please ask this question to a professionally qualified person. Fro whatever little knowledge I have – the land is stock in trade & unless you are not converting it to a capital asset in the balance sheet of the co. the transfer of land from Co. to your own name ‘ll be classified as a STCG & accordingly, the gains if any ‘ll become taxable for the Co.

    This is my view only & not the last truth. Please do check it with a competent person (Say a practicing CA)



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