TaxTMI 
TaxTMI 
Complete list of certain transactions not regarded as Transfer - (New) Section 70 / (Old) Section 47
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion only in shares of amalgamated Indian company (g) Foreign company amalgamation involving shares of Indian company ≥25% shareholders continue; no capital gains tax in foreign jurisdiction (h) Foreign company amalgamation involving foreign shares deriving substantial value from Indian shares [section 9(10)(a)] ≥25% shareholder continuity; no capital gains tax abroad (i) Banking company amalgamation Scheme sanctioned under Banking Regulation Act Demergers (Domestic & Cross-Border) (j) Demerged company transfers capital assets to resulting company Resulting company must be Indian (k) Issue/transfer of shares by resulting company to shareholders of demerged company Must be in consideration of demerger (l) Foreign demerger involving shares in Indian company ≥75% shareholder continuity; no foreign capital gains tax (m) Foreign demerger involving indirect transfer of Indian assets [section 9(10)(a)] ≥75% shareholder continuity; no foreign capital gains tax Banking & Co-operative Bank Reorganisation (n) Transfer by predecessor co-operative bank Transfe....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... books, collections, etc. Transfer to Government, University, Museum, National Archives or notified institution Business Succession - Firm to Company (zd) Firm succeeded by company All four conditions must be satisfied. Clause Requirement (i) All assets and liabilities of the firm become assets and liabilities of the company (ii) All partners become shareholders in the same proportion as their capital accounts (iii) Partners receive no consideration other than shares (iv) Partners collectively hold at least 50% voting power for 5 years Business Succession - Company to LLP (ze) Conversion of company into LLP All seven conditions must be satisfied cumulatively. Condition Requirement Purpose (i) All assets and liabilities of the company become assets and liabilities of LLP Complete succession (ii) All shareholders become partners in same proportion Continuity of ownership (iii) No consideration other than capital contribution and profit-sharing rights in LLP Prevent disguised sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rants alloted by company to employee under ESOPs. b) As per sixth proviso to section 48 FMV on the date of transfer (date of GIFT or irrevocable trust) shall be treated as FVOC of such shares, debentures or warrants. • Section 47(iv) - Transfer of capital assets by holding to 100% subsidiary if subsidiary is Indian Company • Section 47(v) - Transfer of capital assets by 100% subsidiary to holding, if holding is Indian Company Transfer Under Amalgamation : • Section 47(vi) - Transfer in scheme of amalgamation if amalgamated company is Indian • Section 47(via) & (viab) - Transfer of Shares in Indian Co. or Shares of Foreign Company (FC) which derive its value from share of Indian Co. by Amalgamating Foreign Company to Amalgamated Foreign Company (FC). • Note: a) If atleast 25% of shareholders of Amalgamating Foreign Company (FC) continue in Amalgamated Foreign Company (FC). b) Such transfer does not attract tax in the country in which Amalgamating Co. is incorporated. •....
X X X X Extracts X X X X
X X X X Extracts X X X X
....led :- • a) All assets & liabilities transfer to Company. • b) Sole proprietor become shareholder • c) Consideration to Sole proprietor shall the shares in the Company. • d) His shareholding in the company should be atleast 50% during 5 years from the date of conversion. • Section 47(xiii) - Conversion of Firm into Company or Conversion of Stock exchange as AOP/BOI into recognised stock exchange as Company, following conditions to be fulfilled :- • a) All assets & liabilities transfer to Company. • b) All partners/members become shareholders in proportion of their capital standing as on the date of succession. • c) Consideration to partners/members will only be the allotment of shares in Company. • d) Total Voting Power of partners/members in the company should be atleast 50% during 5 years from the date of succession. • e) The Corporatization or demutualisation of Recognised stock exchange in India is carried out as per corporatization or demutualisation scheme ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....• Section 47(xb) - Conversion of Preference Share of a company into Equity Share of same Company, following points has to consider :- • Cost of Acquisition of equity share received on conversion shall be the cost of that part of preferance share which is so converted. • Period of holding of equity share shall also include the period for which preference shares held by the assessee. Other Points: • Section 47(viic) - Transfer of Sovereign Gold Bond issued by RBI under Sovereign Gold Bond Scheme 2015, by way of redemption by the assessee being an Individual. • Section 47(viid) - any transfer of a capital asset, being conversion of gold into Electronic Gold Receipt issued by a Vault Manager, or conversion of Electronic Gold Receipt into gold. • Sovereign Gold Bond scheme, 2015 • This scheme of the government of India is intended to reduce the demand for physical gold and consequently, reduce the foreign exchange outflow due to import gold . The two-fold benefit or this scheme are: • The gold Bond would serve as a subsitute for physical gold and ....