Section 47 - Transactions not regarded as transfer - Income-tax Act, 1961

Transactions not regarded as transfer. 47. Nothing contained in section 45 shall apply to the following transfers :- (i) any distribution of capital assets on the total or partial partition of a Hindu undivided family; (ii) 1 [ *** ] 56 [ (iii) any transfer of a capital asset by an individual or a Hindu undivided family, under a gift or will or an irrevocable trust; ] 2 [Provided that this clause shall not apply to transfer under a gift or an irrevocable trust of a capital asset being shares, debentures or warrants allotted by a company directly or indirectly to its employees under 3 [ any Employees' Stock Option Plan or Scheme of the company offered to such employees in accordance with the guidelines issued by the Central Government in this behalf ] ; ] (iv) any transfer of a capital asset by a company to its subsidiary company, if- (a) the parent company or its nominees hold the whole of the share capital of the subsidiary company, and (b) the subsidiary company is an Indian company; 4 [ (v) any transfer of a capital asset by a subsidiary company to the holding company, if- (a) the whole of the share capital of the subsidiary company is held by the holding company, and (b) the holding company is an Indian company : ] 5 [Provided that nothing contained in clause (iv) or clause (v) shall apply to the transfer of a capital asset made after the 29th day of February, 1988, as stock-in-trade; ] 6 [ (vi) any transfer, in a scheme of amalgamation, of a capital asset by the amalgamating company to the amalgamated company if the amalgamated company is an Indian company; ] 7 [ (via) any transfer, in a scheme of amalgamation, of a capital asset being a share or shares held in an Indian company, by the amalgamating foreign company to the amalgamated foreign company, if- (a) at least twenty-five per cent of the shareholders of the amalgamating foreign company continue to remain shareholders of the amalgamated foreign company, and (b) such transfer does not attract tax on capital gains in the country, in which the amalgamating company is incorporated; ] 8 [ (viaa) any transfer, in a scheme of amalgamation of a banking company with a banking institution sanctioned and brought into force by the Central Government under sub-section (7) of section 45 of the Banking Regulation Act, 1949 (10 of 1949), of a capital asset by the banking company to the banking institution. Explanation .-For the purposes of this clause,- (i) banking company shall have the same meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (ii) banking institution shall have the same meaning assigned to it in sub-section (15) of section 45 of the Banking Regulation Act, 1949 (10 of 1949); ] 35 [ (viab) any transfer, in a scheme of amalgamation, of a capital asset, being a share of a foreign company, referred to in the Explanation 5 to clause (i) of sub-section (1) of section 9, which derives, directly or indirectly, its value substantially from the share or shares of an Indian company, held by the amalgamating foreign company to the amalgamated foreign company, if- (A) at least twenty-five per cent. of the shareholders of the amalgamating foreign company continue to remain shareholders of the amalgamated foreign company; and (B) such transfer does not attract tax on capital gains in the country in which the amalgamating company is incorporated; ] 9 [ (vib) any transfer, in a demerger, of a capital asset by the demerged company to the resulting company, if the resulting company is an Indian company; (vic) any transfer in a demerger, of a capital asset, being a share or shares held in an Indian company, by the demerged for eign company to the resulting foreign company, if- (a) 10 [ the shareholders holding not less than three-fourths in value of the shares ] of the demerged foreign company continue to remain shareholders of the resulting foreign company; and (b) such transfer does not attract tax on capital gains in the country, in which the demerged foreign company is incorporated : Provided that the provisions of sections 391 to 394 of the Companies Act, 1956 (1 of 1956) shall not apply in case of demergers referred to in this clause; 28 [ (vica) any transfer in a business reorganisation, of a capital asset by the predecessor co-operative bank to the successor co-operative bank 47 [ or to the converted banking company ] ; (vicb) any transfer by a shareholder, in a business reorganisation, of a capital asset being a share or shares held by him in the predecessor co-operative bank if the transfer is made in consideration of the allotment to him of any share or shares in the successor co-operative bank 48 [ or to the converted banking company ] . Explanation .-For the purposes of clauses (vica) and (vicb), the 49 [ expressions business re-organisation , converted banking company , predecessor co-operative bank and ] successor co-operative bank shall have the meanings respectively assigned to them in section 44DB; ] 36 [ (vicc) any transfer in a demerger, of a capital asset, being a share of a foreign company, referred to in the Explanation 5 to clause (i) of subsection (1) of section 9, which derives, directly or indirectly, its value substantially from the share or shares of an Indian company, held by the demerged foreign company to the resulting foreign company, if- (a) the shareholders, holding not less than three-fourths in value of the shares of the demerged foreign company, continue to remain shareholders of the resulting foreign company; and (b) such transfer does not attract tax on capital gains in the country in which the demerged foreign company is incorporated: Provided that the provisions of sections 391 to 394 of the Companies Act, 1956 (1 of 1956) shall not apply in case of demergers referred to in this clause;] (vid) any transfer or issue of shares by the resulting company, in a scheme of demerger to the shareholders of the demerged company if the transfer or issue is made in consideration of demerger of the undertaking ;] (vii) any transfer by a shareholder, in a scheme of amalgamation, of a capital asset being a share or shares held by him in the amalgamating company, if- (a) the transfer is made in consideration of the allotment to him of any share or shares in the 32 [amalgamated company except where the shareholder itself is the amalgamated company, and] (b) the amalgamated company is an Indian company; 11 [(viia) any transfer of a capital asset, being bonds or 12 [ Global Depository Receipts ] referred to in sub-section (1) of section 115AC, made outside India by a non-resident to another non-resident; ] 42 [ ( viiaa) any transfer, made outside India, of a capital asset being rupee denominated bond of an Indian company issued outside India, by a non-resident to another non-resident; ] 44 [ (viiab) any transfer of a capital asset, being- (a) bond or Global Depository Receipt referred to in sub-section (1) of section 115AC; or (b) rupee denominated bond of an Indian company; or 45 [ (c) derivative; or (d) such other securities as may be notified by the Central Government in this behalf, ] made by a non-resident on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in foreign currency. Explanation.- For the purposes of this clause,- (a) International Financial Services Centre shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); (b) recognised stock exchange shall have the meaning assigned to it in clause (ii) of Explanation 1 to clause (5) of section 43; (c) derivative shall have the meaning assigned to it in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956. (42 of 1956) ] 46 [ (d) securities shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956.) ] 50 [ (viiac) any transfer, in a relocation, of a capital asset by the original fund to the resulting fund; (viiad) any transfer by a shareholder or unit holder or interest holder, in a relocation, of a capital asset being a share or unit or interest held by him in the original fund in consideration for the share or unit or interest in the resultant fund; Explanation . For the purposes of clauses (viiac) and (viiad), 51 [ (a) original fund means (A) a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the following conditions, namely: (i) the fund is not a person resident in India; (ii) the fund is a resident of a country or a specified territory with which an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A has been entered into; or is established or incorporated or registered in a country or a specified territory as may be notified by the Central Government in this behalf; (iii) the fund and its activities are subject to applicable investor protection regulations in the country or specified territory where it is established or incorporated or is a resident; and (iv) fulfils such other conditions as may be prescribed; (B) an investment vehicle, in which Abu Dhabi Investment Authority is the direct or indirect sole shareholder or unit holder or beneficiary or interest holder and such investment vehicle is wholly owned and controlled, directly or indirectly, by the Abu Dhabi Investment Authority or the Government of Abu Dhabi; or (C) a fund notified by the Central Government in the Official Gazette in this behalf subject to such conditions as may be specified; ] (b) relocation means transfer of assets of the original fund, or of its wholly owned special purpose vehicle, to a resultant fund on or before the 31st day of March, 52 [ 2025 ] , where consideration for such transfer is discharged in the form of share or unit or interest in the resulting fund to,- (i) shareholder or unit holder or interest holder of the original fund, in the same proportion in which the share or unit or interest was held by such shareholder or unit holder or interest holder in such original fund, in lieu of their shares or units or interests in the original fund; or (ii) the original fund, in the same proportion as referred to in sub-clause (i), in respect of which the share or unit or interest is not issued by resultant fund to its share-holder or unit holder or interest holder; (c) resultant fund means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership, which (i) has been granted a certificate of registration as a Category I or Category II or Category III Alternative Investment Fund, and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012 made under the Securities and exchange Board of India Act, 1992 (15 of 1992.) or 53 [ regulated under the International Financial Services Centres Authority (Fund Management) Regulations, 2022, made under the ] International Financial Services Centres Authority Act, 2019 (50 of 2019.); and (ii) is located in any International Financial Services Centre as referred to in sub-section (1A) of section 80LA; (viiae) any transfer of capital asset by India Infrastructure Finance Company Limited to an institution established for financing the infrastructure and development, set up under an Act of Parliament and notified by the Central Government for the purposes of this clause; (viiaf) any transfer of capital asset, under a plan approved by the Central Government, by a public sector company to another public sector company notified by the Central Government for the purposes of this clause or to the Central Government or to a State Government; ] 33 [ (viib) any transfer of a capital asset, being a Government Security carrying a periodic payment of interest, made outside India through an intermediary dealing in settlement of securities, by a non-resident to another non-resident. Explanation .-For the purposes of this clause, Government Security shall have the meaning assigned to it in clause (b) of section 2 of the Securities Contracts (Regulation) Act, 1956; [42 of 1956.]] 38 [ (viic) any transfer of Sovereign Gold Bond issued by the Reserve Bank of India under the Sovereign Gold Bond Scheme, 2015, by way of redemption, by an assessee being an individual; ] 54 [ (viid) any transfer of a capital asset, being conversion of gold into Electronic Gold Receipt issued by a Vault Manager, or conversion of Electronic Gold Receipt into gold. Explanation. For the purposes of this clause, the expressions Electronic Gold Receipt and Vault Manager shall have the meanings respectively assigned to them in clauses (h) and (l) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Vault Managers) Regulations, 2021 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992.); ] 13 [(viii) any transfer of agricultural land in India effected before the 1st day of March, 1970;] 14 [(ix) any transfer of a capital asset, being any work of art, archaeological, scientific or art collection, book, manuscript, drawing, painting, photograph or print, to the Government or a University or the National Museum, National Art Gallery, National Archives or any such other public museum or institution as may be notified by the Central Government in the Official Gazette to be of national importance or to be of renown throughout any State or States. Explanation .-For the purposes of this clause, University means a University established or incorporated by or under a Central, State or Provincial Act and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a University for the purposes of that Act;] 15 [(x) any transfer by way of conversion of 16 [bonds or] debentures, debenture-stock or deposit certificates in any form, of a company into shares or debentures of that company;] 29 [(xa) any transfer by way of conversion of bonds referred to in clause (a) of sub-section (1) of section 115AC into shares or debentures of any company;] 43 [ (xb) any transfer by way of conversion of preference shares of a company into equity shares of that company; ] 17 [(xi) any transfer made on or before the 31st day of December, 18 [1998] by a person (not being a company) of a capital asset being membership of a recognised stock exchange to a company in exchange of shares allotted by that company to the transferor. Explanation .-For the purposes of this clause, the expression membership of a recognised stock exchange means the membership of a stock exchange in India which is recognised under the provisions of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (xii) any transfer of a capital asset, being land of a sick industrial company, made under a scheme prepared and sanctioned under section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) where such sick industrial company is being managed by its workers' co-operative : Provided that such transfer is made during the period commencing from the previous year in which the said company has become a sick industrial company under sub-section (1) of section 17 of that Act and ending with the previous year during which the entire net worth of such company becomes equal to or exceeds the accumulated losses. Explanation .-For the purposes of this clause, net worth shall have the meaning assigned to it in clause (ga) of sub-section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986);] 19 [(xiii) 20 [any transfer of a capital asset or intangible asset by a firm to a company as a result of succession of the firm by a company in the business carried on by the firm, or any transfer of a capital asset to a company in the course of 21 [demutualisation or] corporatisation of a recognised stock exchange in India as a result of which an association of persons or body of individuals is succeeded by such company :] Provided that- (a) all the assets and liabilities of the firm 22 [or of the association of persons or body of individuals] relating to the business immediately before the succession become the assets and liabilities of the company; (b) all the partners of the firm immediately before the succession become the shareholders of the company in the same proportion in which their capital accounts stood in the books of the firm on the date of the succession; (c) the partners of the firm do not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of allotment of shares in the company; and (d) the aggregate of the shareholding in the company of the partners of the firm is not less than fifty per cent of the total voting power in the company and their shareholding continues to be as such for a period of five years from the date of the succession; 23 [(e) the 24 [demutualisation or] corporatisation of a recognised stock exchange in India is carried out in accordance with a scheme for 25 [demutualisation or] corporatisation which is approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);] 26 [(xiiia) any transfer of a capital asset being a membership right held by a member of a recognised stock exchange in India for acquisition of shares and trading or clearing rights acquired by such member in that recognised stock exchange in accordance with a scheme for demutualisation or corporatisation which is approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);] 31 [(xiiib) any transfer of a capital asset or intangible asset by a private company or unlisted public company (hereafter in this clause referred to as the company) to a limited liability partnership or any transfer of a share or shares held in the company by a shareholder as a result of conversion of the company into a limited liability partnership in accordance with the provisions of section 56 or section 57 of the Limited Liability Partnership Act, 2008[6 of 2009.]: Provided that- (a) all the assets and liabilities of the company immediately before the conversion become the assets and liabilities of the limited liability partnership; (b) all the shareholders of the company immediately before the conversion become the partners of the limited liability partnership and their capital contribution and profit sharing ratio in the limited liability partnership are in the same proportion as their shareholding in the company on the date of conversion; (c) the shareholders of the company do not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of share in profit and capital contribution in the limited liability partnership; (d) the aggregate of the profit sharing ratio of the shareholders of the company in the limited liability partnership shall not be less than fifty per cent. at any time during the period of five years from the date of conversion; (e) the total sales, turnover or gross receipts in business of the company in any of the three previous years preceding the previous year in which the conversion takes place does not exceed sixty lakh rupees; 39 [***] 40 [ (ea) the total value of the assets as appearing in the books of account of the company in any of the three previous years preceding the previous year in which the conversion takes place does not exceed five crore rupees; and; ] (f) no amount is paid, either directly or indirectly, to any partner out of balance of accumulated profit standing in the accounts of the company on the date of conversion for a period of three years from the date of conversion. Explanation.-For the purposes of this clause, the expressions private company and unlisted public company shall have the meanings respectively assigned to them in the Limited Liability Partnership Act, 2008 (6 of 2009.) (xiv) where a sole proprietary concern is succeeded by a company in the business carried on by it as a result of which the sole proprietary concern sells or otherwise transfers any capital asset or intangible asset to the company : Provided that- (a) all the assets and liabilities of the sole proprietary concern relating to the business immediately before the succession become the assets and liabilities of the company; (b) the shareholding of the sole proprietor in the company is not less than fifty per cent of the total voting power in the company and his shareholding continues to remain as such for a period of five years from the date of the succession; and (c) the sole proprietor does not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of allotment of shares in the company; (xv) any transfer in a scheme for lending of any securities under an agreement or arrangement, which the assessee has entered into with the borrower of such securities and which is subject to the guidelines issued by the Securities and Exchange Board of India, established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) 27 [or the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India Act, 1934 (2 of 1934)], in this regard.] 30 [ (xvi) any transfer of a capital asset in a transaction of reverse mortgage under a scheme made and notified by the Central Government. ] 34 [ (xvii) any transfer of a capital asset, being share of a special purpose vehicle to a business trust in exchange of units allotted by that trust to the transferor. Explanation .-For the purposes of this clause, the expression special purpose vehicle shall have the meaning assigned to it in the Explanation to clause (23FC) of section 10. ] 37 [ (xviii) any transfer by a unit holder of a capital asset, being a unit or units, held by him in the consolidating scheme of a mutual fund, made in consideration of the allotment to him of a capital asset, being a unit or units, in the consolidated scheme of the mutual fund: Provided that the consolidation is of two or more schemes of equity oriented fund or of two or more schemes of a fund other than equity oriented fund. Explanation .- For the purposes of this clause,- (a) consolidated scheme means the scheme with which the consolidating scheme merges or which is formed as a result of such merger; (b) consolidating scheme means the scheme of a mutual fund which merges under the process of consolidation of the schemes of mutual fund in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (c) equity oriented fund shall have the meaning assigned to it in clause (38) of section 10; (d) mutual fund means a mutual fund specified under clause (23D) of section 10. ] 41 [(xix) any transfer by a unit holder of a capital asset, being a unit or units, held by him in the consolidating plan of a mutual fund scheme, made in consideration of the allotment to him of a capital asset, being a unit or units, in the consolidated plan of that scheme of the mutual fund. Explanation .-For the purposes of this clause,- (a) consolidating plan means the plan within a scheme of a mutual fund which merges under the process of consolidation of the plans within a scheme of mutual fund in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992).; (b) consolidated plan means the plan with which the consolidating plan merges or which is formed as a result of such merger; (c) mutual fund means a mutual fund specified under clause (23D) of section 10.] 55 [ (xx) any transfer of a capital asset, being an interest in a joint venture, held by a public sector company, in exchange of shares of a company incorporated outside India by the Government of a foreign State, in accordance with the laws of that foreign State. Explanation. For the purposes of this clause, joint venture shall mean a business entity, as may be notified by the Central Government in the Official Gazette. ] ******************** Notes :- 1. Omitted by the Finance Act, 1987, w.e.f. 1-4-1988. 2. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001. 3. Substituted for the Employees' Stock Option Plan or Scheme by the Finance Act, 2001, w.e.f. 1-4-2001. 4. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965. 5. Inserted by the Finance Act, 1988, w.e.f. 1-4-1988. 6. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967. 7. Inserted by the Finance Act, 1992, w.e.f. 1-4-1993. 8. Inserted by the Finance Act, 2005, w.e.f. 1-4-2005. 9. Clauses (vib), (vic) and (vid) inserted by the Finance Act, 1999, w.e.f. 1-4-2000. 10. Substituted for at least seventy-five per cent of the shareholders by the Finance Act, 2000, w.e.f. 1-4-2000. 11. Inserted by the Finance Act, 1992, w.e.f. 1-6-1992. 12. Substituted for shares by the Finance Act, 2001, w.e.f. 1-4-2002. 13. Inserted by the Finance Act, 1970, w.e.f. 1-4-1970. 14. Inserted by the Finance Act, 1976, w.e.f. 1-4-1977. 15. Inserted by the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1962. 16. Inserted by the Finance Act, 1992, w.r.e.f. 1-4-1962. 17. Inserted by the Finance Act, 1997, w.e.f. 1-4-1998. 18. Substituted for 1997 by the Finance (No. 2) Act, 1998, w.r.e.f. 1-4-1998. 19. Clauses (xiii) to (xv) inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. 20. Substituted for the portion beginning with the words where a firm is succeeded and ending with the words intangible asset to the company by the Finance Act, 2001, w.e.f. 1-4-2002. Prior to its substitution, the quoted portion read as under : where a firm is succeeded by a company in the business carried on by it as a result of which the firm sells or otherwise transfers any capital asset or intangible asset to the company: 21. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. 22. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 23. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 24. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. 25. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. 26. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004. 27. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 28. Clauses ( vica ) and ( vicb ) inserted after clause ( vic ) by the Finance Act, 2007, w.e.f. 1-4-2008 29. Inserted by the Finance Act, 2008, w.e.f. 1-4-2008. 30. Inserted by the Finance Act, 2008, w.e.f. 1-4-2008. 31. After clause (xiiia), the clause (xiiib) has been inserted vide Finance Act, 2010 w.e.f. the 1st day of April, 2011, 32. Substituted vide Finance Act, 2012, w.e.f. 01-04-2013, before it was read as:- amalgamated company, and 33. Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of April, 2015 34. Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of April, 2015 35. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 36. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 37. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 38. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017 39. Omitted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017 before it was read as, and 40. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017 41. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017 42. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2018. 43. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2018. 44. Inserted vide THE FINANCE ACT, 2018 w.e.f. 1st day of April, 2019 45. Substituted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-04-2020 before it was read as (c) derivative, 46. Inserted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-04-2020 47. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 48. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 49. Substituted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 before it was read as expressions business reorganisation , predecessor co-operative bank and 50. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2022 51. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, (a) original fund means a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the following conditions, namely:- (i) the fund is not a person resident in India; (ii) the fund is a resident of a country or a specified territory with which an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A has been entered into; or is established or incorporated or registered in a country or a specified territory as may be notified by the Central Government in this behalf; (iii) the fund and its activities are subject to applicable investor protection regulations in the country or specified territory where it is established or incorporated or is a resident; and (iv) fulfils such other conditions as may be prescribed; 52. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, 2023 53. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 54. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 55. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 56. Substituted vide Section 19 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 before it was read as, (iii) any transfer of a capital asset under a gift or will or an irrevocable trust :