Capital asset transfers by gift, will or irrevocable trust carry forward prior owner cost and holding period, with an ESOP exception. Transfer of a capital asset by an individual or a Hindu undivided family under a gift, will or irrevocable trust is treated as not regarded as a transfer. The transferee takes the previous owner's acquisition cost, including any cost of improvement, and the previous owner's period of holding is also carried forward. An exception applies to employee-allotted shares, debentures or warrants under a notified ESOP scheme that are gifted, in which case the gift is treated as a transfer and the market value at the time of gift is the sale consideration.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital asset transfers by gift, will or irrevocable trust carry forward prior owner cost and holding period, with an ESOP exception.
Transfer of a capital asset by an individual or a Hindu undivided family under a gift, will or irrevocable trust is treated as not regarded as a transfer. The transferee takes the previous owner's acquisition cost, including any cost of improvement, and the previous owner's period of holding is also carried forward. An exception applies to employee-allotted shares, debentures or warrants under a notified ESOP scheme that are gifted, in which case the gift is treated as a transfer and the market value at the time of gift is the sale consideration.
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