Deemed Disposal as per Section 57

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Deemed Disposal as per Section 57

  • Kailash

    Section 57 of the Income Tax Act 2058 provides:

    कुनै निकायको विगत तीन वर्ष अघिसम्मको स्वामित्वको तुलनामा पचास प्रतिशत वा सो भन्दा बढी स्वामित्व परिवर्तन भएमा सो निकायले आफ्नो स्वामित्वको सम्पत्ति वा आफूले वहन गरेको दायित्व निःसर्ग गरेको मानिनेछ ।

    So, there is a company with 3 shareholders A, B and C and they own 30%, 45% and 25% of the shares respectively. Does section 57 apply in the following scenario in 2019?

    1. Case 1: B sells his entire shares to E in 2018 and in 2019 E sells the entire shares to A.
    2. Case 2: In addition case 1, C sells 10% out of 25% of his shares to A
    3. Case 3: Instead of the scenario in case 2, C sells shares to Z.


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