SINGRODIA GOYAL & CO. INCOME FROM CAPITAL GAINS SEC - 47

1. SINGRODIA GOYAL & CO. INCOME FROM CAPITAL GAINSSEC - 47 TRANSACTION NOT REGARDED AS TRANSFER By KAPIL SHARMA

2. Following shall not be regarded as TRANSFER • Any distribution of capital assets on the total OR partial partition of a Hindu undivided family. • Any transfer of a capital asset under a GIFT or WILL or IRREVOVABLE TRUST. • Any transfer of a capital asset by a company to its subsidiary company if : - parent co.to hold whole of the share AND - subsidiary is an Indian Co. By KAPIL SHARMA

3. SEC 47 –Transactions NOT regarded as “Transfer” Lagey Raho… • Any transfer of a capital asset by a subsidiary co. to the holding co. if : - share capital of subsidiary co. held by holding co. AND - holding co.is Indian co. • Any transfer of a capital asset in a scheme of amalgamation by the amalgamating co. to the amalgamated co. provided amalgamated co. is Indian Co. Panna Palto… By KAPIL SHARMA

4. SEC 47 –Transactions NOT regarded as “Transfer” Lagey Raho… • Any transfer of a capital asset being a share or shares held in an Indian Co. by the amalgamating Foreign Co. to the amalgamated Foreign Co. if: - more than 25% shareholders of the amalgamating co. continue to remain share holders of the amalgamated Co. AND - such transfer is not liable to capital gains tax in the country, in which amalgamating Co. is Incorporated. Panna Palto… By KAPIL SHARMA

5. SEC 47 –Transactions NOT regarded as “Transfer” Lagey Raho… • Any transfer, in a demerger of a capital asset by the demerged company to the resulting company , provided resulting company is an Indian Company. • Any transfer in a demerger of a capital asset being a share held in an Indian Co. by the demerged foreign to the resulting Foreign Co. if : - more than 75% of share holders of demerged Co. remain share holders of resulting Co. - such transfer does not attract capital gains tax in the Country in which foreign Co. is incorporated. Panna Palto… By KAPIL SHARMA

6. SEC 47 –Transactions NOT regarded as “Transfer” Lagey Raho… • Any transfer or issue of shares by the resulting co. to the shareholders of demerged co. provided, transfer or issue is made in consideration of demerger of Co. • Any transfer in a scheme of amalgamation , by a shareholder of a capital asset held by him in the amalgamating co. provided : - the transfer is made in consideration for the shares alloted to him in the amalgamated Co. AND - the amalgamated Co. in Indian Co. Panna Palto… By KAPIL SHARMA

7. SEC 47 –Transactions NOT regarded as “Transfer” Lagey Raho… • Any transfer of a capital asset being any Art Work , Archaeological Work , Scientific OR Art collection , Drawing , Painting , Photograph , etc. to Govt., National Museum , National Art Gallery notified by Central Govt. • Any transfer by way of conversion of Bonds or debenture in any form into shares OR Debentures. Panna Palto… By KAPIL SHARMA

8. SEC 47 –Transactions NOT regarded as “Transfer” Lagey Raho… • Any transfer of a capital asset being land of a sick industrial unit made under a scheme prepared & sanctioned U/S 18 of “Sick Industrial Companies Act 1985” provided such transfer takes place from the period in which unit became sick & ends when NETWORTH of such unit equals to OR exceed the ACCUMULATED LOSSES. Panna Palto… By KAPIL SHARMA

9. SEC 47 –Transactions NOT regarded as “Transfer” Lagey Raho… • Any transfer of a capital asset or intangible asset by a firm to a company in succession of the firm by that company provided : - all the asset & liabilities of the firm immediately before succession becomes asset & liabilities of the Company. - all the partners in the firm becomes shareholders of the company in the ratio of their capital balances as on date of succession. - the partners of the firm do not receive any consideration or benefit in any manner except allotment of shares in the company. - the partners of the firm holds more than 50% of voting powers in the company & such power continues for 5 years from the date of succession. Panna Palto… By KAPIL SHARMA

10. SEC 47 –Transactions NOT regarded as “Transfer” Lagey Raho… • Any transfer of a capital asset being a membership right held by a member of a recognised stock exchange in India for acquisition of shares & trading rights acquired by such member in that recognised stock exchange in accordance with the scheme approved by SEBI. • Any transfer OR sale by a sole proprietary concern of a capital asset to the successor company provided : - all asset & liability of a sole proprietary concern becomes asset & liability of the company. - the shareholding of the sole proprietor concern is more than 50% of total voting power & the same is continued for next 5 years. AND - the sole proprietor does not receive any consideration OR benefit in any manner from the company except share allotment. Panna Palto… By KAPIL SHARMA

11. SEC – 47A WITHDRAWL • Where at any time before the expiry of 8 years from the date of transfer of capital asset as discussed in clause (iv) & (v) of sec –47 : - such capital asset is converted by the transferee company into stock in trade OR - the parent Co. or the holding Co. cease to hold whole of shares in capital of subsidiary Co. The profit thereafter arised from transfer is to be charged to tax as Capital Gains. Panna Palto… By KAPIL SHARMA

12. SEC 47A – Withdrawal Lagey Raho… • Where at any time conditions laid down in proviso to clause (xiii) OR (xiv) are not complied with, the profit or gains earlier exempt shall now be charged to tax under head “CAPITAL GAINS”. By KAPIL SHARMA

13. DHANYAVAD