India - Income Tax Act 2010 - Saarc

S. 47 I.T. ACT, 1961 1.306(iii) any transfer of a capital asset under a gift 72 or will or an irrevocabletrust :73[Provided that this clause shall not apply to transfer under a gift oran irrevocable trust of a capital asset being shares, debentures orwarrants allotted by a company directly or indirectly to its employeesunder 74 [any Employees’ Stock Option Plan or Scheme of the companyoffered to such employees in accordance with the guidelinesissued by the Central Government in this behalf];](iv) any transfer of a capital asset by a company to its subsidiary company,if—(a) the parent company or its nominees hold the whole of the sharecapital of the subsidiary company, and(b) the subsidiary company is an Indian company;75[(v) any transfer of a capital asset by a subsidiary company to the holdingcompany, if—(a) the whole of the share capital of the subsidiary company is heldby the holding company, and(b) the holding company is an Indian company :]76[Provided that nothing contained in clause (iv) or clause (v) shallapply to the transfer of a capital asset made after the 29th day ofFebruary, 1988, as stock-in-trade;]77[(vi) any transfer, in a scheme of amalgamation 78 , of a capital asset by theamalgamating company to the amalgamated company if the amalgamatedcompany is an Indian company;]79[(via) any transfer, in a scheme of amalgamation 78 , of a capital asset beinga share or shares held in an Indian company, by the amalgamatingforeign company to the amalgamated foreign company, if—(a) at least twenty-five per cent of the shareholders of the amalgamatingforeign company continue to remain shareholders of theamalgamated foreign company, and(b) such transfer does not attract tax on capital gains in the country,in which the amalgamating company is incorporated;]80[(viaa) any transfer, in a scheme of amalgamation of a banking companywith a banking institution sanctioned and brought into force by the72. For the meaning of the expression “under a gift”, see Taxmann’s Direct Taxes Manual,Vol. 3.73. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.74. Substituted for “the Employees’ Stock Option Plan or Scheme” by the Finance Act, 2001,w.e.f. 1-4-2001.75. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.76. Inserted by the Finance Act, 1988, w.e.f. 1-4-1988.77. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.78. For the meaning of the term “amalgamation”, see Taxmann’s Direct Taxes Manual, Vol. 3.79. Inserted by the Finance Act, 1992, w.e.f. 1-4-1993.80. Inserted by the Finance Act, 2005, w.e.f. 1-4-2005.