https://www.taxtmi.com/manuals?id=951 Capital gains treatment applies to distributions of assets by a company in liquidation under the new section 68 and the earlier section 46. The liquidating company's distribution of assets to shareholders is not treated as a transfer, so capital gains are not chargeable in the company's hands merely because assets are distributed on winding up. In the shareholder's hands, the amount received as cash or fair market value of assets, reduced by any amount taxable as dividend, is taken as the consideration for capital gains computation, with cost of acquisition and related deductions applied under the earlier regime. en-us Tue, 25 Aug 2015 15:03:00 +0530 Wed, 03 Jun 2026 16:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/manuals?id=951 Capital gains treatment applies to distributions of assets by a company in liquidation under the new section 68 and the earlier section 46. The liquidating company's distribution of assets to shareholders is not treated as a transfer, so capital gains are not chargeable in the company's hands merely because assets are distributed on winding up. In the shareholder's hands, the amount received as cash or fair market value of assets, reduced by any amount taxable as dividend, is taken as the consideration for capital gains computation, with cost of acquisition and related deductions applied under the earlier regime. Manuals Income Tax Tue, 25 Aug 2015 15:03:00 +0530 https://www.taxtmi.com/manuals?id=951