Capital gains exemption for foreign company share demergers applies when shareholding continuity and foreign tax conditions are met. Transfer of a capital asset in a demerger, being a share of a foreign company that derives substantial value from shares of an Indian company, is treated as not a transfer when the shareholding continuity and foreign capital gains tax conditions are satisfied. The resulting foreign company takes the cost at which the previous owner acquired the property, and the specified Companies Act reconstruction provisions are stated not to apply to such demergers.
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 gains exemption for foreign company share demergers applies when shareholding continuity and foreign tax conditions are met.
Transfer of a capital asset in a demerger, being a share of a foreign company that derives substantial value from shares of an Indian company, is treated as not a transfer when the shareholding continuity and foreign capital gains tax conditions are satisfied. The resulting foreign company takes the cost at which the previous owner acquired the property, and the specified Companies Act reconstruction provisions are stated not to apply to such demergers.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
