Implication of sale of company's property
C N SRIDHARA
(Querist) 29 October 2018
This query is : Resolved
Dear Experts,
I came here with a doubt, am a Practicing CA, and one of my Client is the Director of a Private Company indulged in Fabrication of Steel & wood structure. And they have sold a Property which belong to a Company. Now we are about to file IT Returns of the Company, and yeah the Property is sold at profit. My question to you, is whether I need to consider the profit (sale of Property) with the normal business profit, if yes how to show it in IT Returns or the profit attracts Capital Gain if this is correct how to note the same in IT Returns, please clarify. And your reply is appreciated and waiting for your valuable reply
KISHAN DUTT KALASKAR
(Expert) 29 October 2018
Dear Sir,
The question involves both civil law and taxation matter. You are advised to contact tax practitioner.
Isaac Gabriel
(Expert) 29 October 2018
Better appropriate under capital gains so that the assessee can gain. If not the firm will be disadvantaged.Further, as per Kishan Dut Expert, CA club LCI where you can get more replies.
Dr J C Vashista
(Expert) 31 October 2018
Since you are (as stated by yourself) a CA it would be appropriate to consult some "senior" CA or post this query in CA club, you have wrongly posted in legal experts platform.
M V Gupta
(Expert) 01 November 2018
As the property is not goods for sale and a capital asset of the company, the profit earned should be treated as capital gains and accordingly may be filled in the respective schedule in the return..
If my assumption that property is capital asset of the Company is not correct, and the item is part of goods for sale, then it should be regarded as profit liable to normal tax.
