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TMI BlogTransactions not regarded as transferX X X X Extracts X X X X X X X X Extracts X X X X ..... g 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 resu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal 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 Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme 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 me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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