Dear All,
I have query about section 54EA of the Income Tax Act.
The query is "If we transfer the specified assets by way of Gift within 3 years of their purchase" then will it amount to transfer under this section.
Section 47 does not take gift as transfer however section 47 overrules section 45 only.
Pls reply......
Gift is not covered under proviosions of sec 47, therefore accoding to S 2(47) its a transfer
"(2) Where the [specified securities] are transferred or converted (otherwise than by transfer) into money at any time within a period of three years from the date of their acquisition, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such [specified securities] as provided in clause (a) or clause (b) of sub-section (1) shall be deemed to be the income chargeable under the head “Capital gains” relating to long-term capital assets of the previous year in which the specified securities] are transferred or converted (otherwise than by transfer) into money."
Therefore Cap gain will arise
Lets see what others say.
CAclubindia
