Transfer in relation to a
capital asset includes the following types of transactions:—
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(i) the sale, exchange or relinquishment of the asset; or
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(ii) the extinguishment of any rights therein; or
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(iii) the compulsory acquisition thereof under any law; or
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(iv) the owner of a capital asset may convert the same into the stock-in-trade of a business carried on by him. Such conversion is treated as transfer; or
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(v) the maturity or redemption of a zero coupon bond; or
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(vi) possession of an immovable property in consideration of part-performance of a contract referred to in section 53A of the Transfer of Property Act, 1882.
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(vii) transactions which have the effect of transferring or enabling the enjoyment of an immovable property.
Explanation 2 to section 2(47) clarifies that ‘transfer’ includes and shall be deemed to have always
included –
(1) disposing of or parting with an - asset or any interest therein, or
(1) disposing of or parting with an - asset or any interest therein, or
(2) creating any interest in any asset in -
any manner whatsoever
-voluntarily or involuntarily
-directly or indirectly,
- absolutely or conditional
by way of an agreement (whether entered into in India or outside India) or otherwise.
NOTE- Must read definition carefully as- Any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to Income-tax under this head in the previous year in which the transfer took place. subject to exceptions-
1. Receipts from insurance parties [Section 45(1A)]
2. Conversion or treatment of a capital asset as stock-in-trade [Section 45(2)]
3. Transfer of beneficial interest in securities [Section 45(2A)]
4. Introduction of capital asset as capital contribution [Section 45(3)]
5. Distribution of capital assets on a dissolution of firm/AOP or BOI [Section 45(4)]
6. Compensation on compulsory acquisition [Section 45(5)]
7. Taxability of capital gains in case of Specified agreement [Section 45(5A)]
For Budget'2018 Impact- http://amzn.to/2nQtbYu
NOTE- Must read definition carefully as- Any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to Income-tax under this head in the previous year in which the transfer took place. subject to exceptions-
1. Receipts from insurance parties [Section 45(1A)]
2. Conversion or treatment of a capital asset as stock-in-trade [Section 45(2)]
3. Transfer of beneficial interest in securities [Section 45(2A)]
4. Introduction of capital asset as capital contribution [Section 45(3)]
5. Distribution of capital assets on a dissolution of firm/AOP or BOI [Section 45(4)]
6. Compensation on compulsory acquisition [Section 45(5)]
7. Taxability of capital gains in case of Specified agreement [Section 45(5A)]
For Budget'2018 Impact- http://amzn.to/2nQtbYu
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