Mumbai/Chennai: Corporate restructuring is a common practice. Assets or shares are transferred by one company to another group company for various business reasons. Such a transfer can even be done by way of a gift, which mitigates tax liability. It is this mode that the Budget proposals now seek to plug.
Currently, taxation of gifts as an anti-abuse provision is restricted to receipt of money above Rs 50,000, immovable property or specified movable property, without consideration or for inadequate consideration by individuals and HUFs. The cash or value of the gift is taxed in the hands of the recipient as income from other sources. Firms, limited liability partnerships or private companies are covered only if the gift is of un…
Read the full article at: http://economictimes.indiatimes.com/news/economy/finance/budget-impact-gifts-of-shares-assets-in-corporate-restructuring-now-taxable/articleshow/56950659.cms
