Demerger transfer treatment keeps capital asset transfers outside transfer rules when the resulting company is Indian. Transfer of a capital asset in a demerger by the demerged company to the resulting company is treated as a transaction not regarded as transfer where the resulting company is an Indian company. The cost for the transferee is the cost to the previous owner or demerged company, and the previous owner's period of holding is also counted.
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.
Demerger transfer treatment keeps capital asset transfers outside transfer rules when the resulting company is Indian.
Transfer of a capital asset in a demerger by the demerged company to the resulting company is treated as a transaction not regarded as transfer where the resulting company is an Indian company. The cost for the transferee is the cost to the previous owner or demerged company, and the previous owner's period of holding is also counted.
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