Section 46 - Capital Gain on Distribution Of Assets By Companies In Liquidation

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..... e is no "transfer" in such distribution and capital gain is not chargeable in the hands of the company. In case if the liquidator sells the assets of the company resulting in a capital gain, and distributes the funds then the company is liable to pay the tax Section 46(2): Tax Treatment in the hands of Shareholders Where a shareholder receives money or other assets at the time of liquidation of .....

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..... Non-Resident Shareholder The shareholder of the company may be a non-resident, who on liquidation receives assets of the company. Section 9 of IT Act states that any dividend paid by an Indian company outside India is income deemed to accrue and arise in India. Thus, the provisions of section 46 of the IT Act will be equally applicable to the non-resident shareholder.
Manuals, Ready reckoner, .....

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