https://www.taxtmi.com/forum/issue?id=2037 Tax consequences of asset transfers on demerger depend on whether the asset is stock in trade or a capital asset; a demerger non transfer provision and a capital asset carryover rule provide that, for capital assets, the resulting company takes the same actual cost as the demerged company subject to a cap that such cost shall not exceed the written down value in the hands of the demerged company. The gold was stated to be stock in trade, so the capital asset carryover rule does not apply and tax implications differ accordingly. en-us Mon, 05 Jul 2010 15:46:21 +0530 Thu, 23 Jan 2025 15:58:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=2037 Tax consequences of asset transfers on demerger depend on whether the asset is stock in trade or a capital asset; a demerger non transfer provision and a capital asset carryover rule provide that, for capital assets, the resulting company takes the same actual cost as the demerged company subject to a cap that such cost shall not exceed the written down value in the hands of the demerged company. The gold was stated to be stock in trade, so the capital asset carryover rule does not apply and tax implications differ accordingly. Discussion-Forum Income Tax Mon, 05 Jul 2010 15:46:21 +0530 https://www.taxtmi.com/forum/issue?id=2037