Conversion of debentures into shares or debentures now expressly covered by an inserted clause in section 47 of income tax. The Finance (No. 2) Act, 1991 inserts clause (x) into section 47 of the Income-tax Act, deeming that any transfer by way of conversion of debentures, debenture-stock or deposit certificates of a company into shares or debentures of that company is covered by section 47, and states this insertion is deemed effective from the first day of April, 1962.