The split of the Godrej Group into two factions, governed by different family members, may not incur capital gains tax due to its classification as a family settlement. This arrangement aims to ensure fair asset distribution while maintaining familial harmony, with tax exemptions under Indian law. However, potential tax implications arise if companies transfer assets directly. Legal precedent and specific conditions outline the validity of such settlements, emphasizing fair distribution and dispute resolution. Despite tax benefits, genuine intent and adherence to regulations are vital for validity.
Godrej Group’s Division: Tax Implications and Family Settlement Insights
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