Meaning of Transfer of Capital Asset

Table of Contents

Transfer of Capital Assets includes the following

  • the sale, exchange or relinquishment of the asset
  • the extinguishment of any rights therein
  • the compulsory acquisition thereof under any law
  • in a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion or treatment
  • the maturity or redemption of a zero coupon bond
  • any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A36of the Transfer of Property Act, 1882
  • any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property.

Roll over in case of Fixed Maturity Plan (FMP) of mutual funds will not amount of transfer if the scheme remains the same. Therefore no capital gain arises at time of roll over.
However capital gains will arise at time of redemption of units or opting out of scheme as the case may be. Circular no. 6/2015

 Transactions which are not regarded as transfer of capital assets.

 

Confused about complicated laws? Take our GST consultation services to get your issues solved from GST experts. Click here to know more.

Read More Articles

Section 44ADA – Presumptive Taxation Scheme for Professionals

From financial year 2016-17, a new Section 44ADA is introduced for presumptive income for professionals. This section is similar to section 44AD for traders. Under this section professionals such as legal, medical, engineering, architect, accountancy, technical consultancy, interior decoration or any

Read Article »

Registration Under GST

Topic Covered in this Article Persons required to register compulsorily Documents Required for Registration Fees for Registration Voluntary Registration Time Limit for Registration Effective Date of Registration Requirements for Registration Can a person take more than one GSTIN Things that

Read Article »

GST on Import

Article 269A of constitution mandates that import of goods or services in India is considered as Inter-state trade. Therefore, import of goods or services is considered as interstate supply and is liable for payment of IGST. IGST on the import

Read Article »

Subscribe

We will send updates relating to GST only

(No spam, you can unsubscribe anytime)