Capital gains reinvestment in specified securities preserves exemption but triggers clawback if disposed within seven years. The Board specifies that Fully Convertible Debentures and Deep Discount Bonds issued by Noida Toll Bridge Company Limited, to be allotted within one year, qualify for reinvestment of net consideration from transfer of long-term capital assets only if invested in accordance with the reinvestment provision; if such securities are converted, transferred or realised within seven years of allotment, the initial investment is to be taxed as a capital gain.
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 reinvestment in specified securities preserves exemption but triggers clawback if disposed within seven years.
The Board specifies that Fully Convertible Debentures and Deep Discount Bonds issued by Noida Toll Bridge Company Limited, to be allotted within one year, qualify for reinvestment of net consideration from transfer of long-term capital assets only if invested in accordance with the reinvestment provision; if such securities are converted, transferred or realised within seven years of allotment, the initial investment is to be taxed as a capital gain.
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