TaxTMI 
TaxTMI 
section 46 (2) and exemption under section 54 EC possible?
section 46 (2) and exemption under section 54 EC possible?
02 Oct 2017 
6 Replies 
1352 Views Asked by
Exemption under section 54EC may not be available for transfers under section 46(2); applicability hinges on commencement timing.
Question posed whether a transfer under section 46(2) can obtain exemption under section 54EC. Respondents observed that the exemption under section 54EC is tied to a legislative commencement introduced by the Finance Bill, 2017 and effective from 1.4.2018, and one participant expressed the view that section 54EC would not be available in the context of a section 46(2) transfer. The discussion recorded practitioner opinions and disclaimers of income tax expertise rather than a definitive legal conclusion. (AI Summary)
Question posed whether a transfer under section 46(2) can obtain exemption under section 54EC. Respondents observed that the exemption under section 54EC is tied to a legislative commencement introduced by the Finance Bill, 2017 and effective from 1.4.2018, and one participant expressed the view that section 54EC would not be available in the context of a section 46(2) transfer. The discussion recorded practitioner opinions and disclaimers of income tax expertise rather than a definitive legal conclusion. (AI Summary)