Capital Gain - Transactions which are not considered as transfer
Section 46: Distribution of assets on liquidation of Company Where the assets of a company are distributed to its shareholders on liquidation of a company, such distribution shall not be regarded as transfer in the hands of the company. Section 47: Transactions which are not considered as Transfer The following transactions are exempt from chargeability to Capital gains, subject to the satisfaction of conditions stipulated: 1- Distribution of a capital asset on total or partial partition of a HUF. 2- Transfer of a capital asset by way of gift or under a will or an irrevocable trust. (This clause hall not apply to transfer under a gift / irrevocable trust of a capital asset being share, debentures or warrant allotted by a company to its employee under ESOP of the company as per guidelines of CG. i.e.ESOP are not covered over here.) 3- Transfer of a capital asset by holding company to its subsidiary company or vice versa is exempt if the following two conditions are fulfilled: a...