section 47/168

[hariharpur shivaram]

Section 47 says transactions not regarded as transfer for any transfer of capital asset under gift or will.

Under section 168 ,the executors have to pay Capital gain tax and then distribute the remaining amount to the beneficiearies stated in the will.

Please explain the applicability of both the sections and whether s 47 overrides section 168 with any any case law if available.

[DR.MARIAPPAN GOVINDARAJAN]

Section 47 says that any transfer of capital by means of gift is not considered as a transfer. Likethat if a capital asset is transferred to a person by means of a will executed by the deceased is also not a transfer under income tax.

The position of executor is distinct from the above. The deceased person may authorize a person as executor and give instructions to deal with his money. The executor is to act according to the instructions of the deceased and he has to pay tax on the income of the deceased.

AI Summary

Transfer by will or gift not treated as transfer, while executor remains liable to tax on the deceased's income. Transfer by gift or by will is not treated as a 'transfer' for capital gains under section 47, so vesting of assets in beneficiaries by will or gift does not itself trigger capital gains tax; section 168 separately places on the executor the duty to administer the deceased's assets and to pay tax on the deceased's income and gains before distributing the remainder to beneficiaries.