section 47(xi)
This query is : Resolved
21 September 2010
can u please eloborately explain the following
transfer by exchange of a capital asset being membership of a recognised stock exchange for shares of a company to which such membership is trnsfrd
transfer by exchange of a capital asset being membership of a recognised stock exchange for shares of a company to which such membership is trnsfrd
Aditya Maheshwari
(Expert)
21 September 2010
Section reads as
27[(xi) any transfer made on or before the 31st day of December, 28[1998] by a person (not being a company) of a capital asset being membership of a recognised stock exchange to a company in exchange of shares allotted by that company to the transferor.
Explanation.—For the purposes of this clause, the expression “membership of a recognised stock exchange” means the membership of a stock exchange in India which is recognised under the provisions of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
If a person holding a membership card of a recognised stock exchange transfers his card in consideration of shares of the company then the same will not be treated as transfer and not liable to capital gains.
27[(xi) any transfer made on or before the 31st day of December, 28[1998] by a person (not being a company) of a capital asset being membership of a recognised stock exchange to a company in exchange of shares allotted by that company to the transferor.
Explanation.—For the purposes of this clause, the expression “membership of a recognised stock exchange” means the membership of a stock exchange in India which is recognised under the provisions of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
If a person holding a membership card of a recognised stock exchange transfers his card in consideration of shares of the company then the same will not be treated as transfer and not liable to capital gains.
22 September 2010
company (in second last line)mean any co or that stock exchange co like nse
Aditya Maheshwari
(Expert)
22 September 2010
any company.
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