Whether conversion of convertible preference shares into equity shares shall attract Capital Gains or any other tax if it is converted after 1 year ?
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Convertible Preference Shares
Replies (2)
Conversion of preference shares into equity shares is treated as transfer and is liable for capital gain tax as same is not covered in the provisions of Sec.47 of the I Tax Act, 1961.
As conversion of preference shares into equity amounts to their redemption thereof........and redemption of preference shares amounts to transfer within the meaning of SEc.2(47)....
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