India - Income Tax Act 2010 - Saarc

1.307 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 47Central Government under sub-section (7) of section 45 of theBanking Regulation Act, 1949 (10 of 1949), of a capital asset by thebanking company to the banking institution.Explanation.—For the purposes of this clause,—(i) “banking company” shall have the same meaning assigned to itin clause (c) of section 5 81 of the Banking Regulation Act, 1949 (10of 1949);(ii) “banking institution” shall have the same meaning assigned to itin sub-section (15) of section 45 81 of the Banking Regulation Act,1949 (10 of 1949);]82[(vib) any transfer, in a demerger, of a capital asset by the demergedcompany to the resulting company, if the resulting company is anIndian company;(vic) any transfer in a demerger, of a capital asset, being a share or sharesheld in an Indian company, by the demerged foreign company to theresulting foreign company, if—(a) 83 [the shareholders holding not less than three-fourths in value ofthe shares] of the demerged foreign company continue to remainshareholders of the resulting foreign company; and(b) such transfer does not attract tax on capital gains in the country,in which the demerged foreign company is incorporated :Provided that the provisions of sections 391 to 394 84 of the CompaniesAct, 1956 (1 of 1956) shall not apply in case of demergers referred toin this clause;85[(vica) any transfer in a business reorganisation, of a capital asset by thepredecessor co-operative bank to the successor co-operative bank;(vicb) any transfer by a shareholder, in a business reorganisation, of acapital asset being a share or shares held by him in the predecessorco-operative bank if the transfer is made in consideration of theallotment to him of any share or shares in the successor co-operativebank.Explanation.—For the purposes of clauses (vica) and (vicb), theexpressions “business reorganisation”, “predecessor co-operativebank” and “successor co-operative bank” shall have the meaningsrespectively assigned to them in section 44DB;](vid) any transfer or issue of shares by the resulting company, in a schemeof demerger to the shareholders of the demerged company if the81. For text of sections 5(c) and 45 of the Banking Regulation Act, 1949, see Appendix.82. Clauses (vib), (vic) and (vid) inserted by the Finance Act, 1999, w.e.f. 1-4-2000.83. Substituted for “at least seventy-five per cent of the shareholders” by the Finance Act,2000, w.e.f. 1-4-2000.84. For text of sections 391 to 394 of the Companies Act, 1956, see Appendix.85. Inserted by the Finance Act, 2007, w.e.f. 1-4-2008.