Section 47(iii) - Transfer of capital asset under a gift, will or an irrevocable trust - Income Tax - Ready Reckoner - Income Tax

Section 47(iii) :- Transfer of capital asset under a gift, will or an irrevocable trust Section Transaction not regarded as transfer Transferor u/s 2(47) Transferee u/s 2(47) Capital asset involved u/s 2(14) What is the cost in the hands of transferee Period of Holding 47(iii) Transfer of capital asset under a gift, will or an irrevocable trust Individuals Any person Any capital asset except Shares/Debentures/Warrants allotted to the transferor individual under ESOP. Cost to the previous owner/individual transferor POH of previous owner shall also be considered. Exception: This rule shall not be applicable, if the following conditions satisfied: Tax payer is an employee he has been allotted (directly/indirectly) shares/debentures/warrants by the employer company under a notified ESOP scheme in accordance with the guideline issued by the Central Government and the aforesaid shares/debentures/warrants are gifted by the concerned employee to any person. In this case, the gift of shares/debentures/warrants will be treated as 'transfer'. There is a special provision for computation of sale consideration. Sale consideration in such a case, will be market value at the time of gift.