INCOME-TAX ACT, 1961

CHAPTER IV

COMPUTATION OF TOTAL INCOME

Heads of Income

E.—Capital gains

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 patial partition of a Hindu undivided family;

(ii) any distribution of capital assets on the dissolution of a firm, body of individuals or other association of persons;

(iii) any transfer of a capital asset under a gift or a will or an irrevocable trust;

(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;

²[(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.]

¹[(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;

(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 amalgamated company, and

(b) the amalgamated company is an Indian company.]

2. Ins. by s. 15 of the Finance Act, 1965 w.e.f. 1-4-65.

1. Ins. by s. 19 of Finance (No. 2) Act, 1967 w.e.f. 1-4-1967.