Sec 54ec of income tax

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What is meaning of transfered or converted into money in Sec 54EC ...?????

 

is it means consideration must be in cash...????????

 

Thanks in adavance....!!!!!!

Replies (1)

Transfer is defined u/s 2(47) of Income tax act to include sale, exchange or relinquishment of asset or extinguishment of any rights thereon or compulsory acquisition of asset thereof. It also includes conversion of capital asset into stock in trade and maturity oor redemption ofzero coupon bonds.

'converted into money' means to make arrangement for encashment of asset/instrument by what ever method. it may be pledging or discounting or any other form. the crux of the matter is that the assessss in lieu of the asset gets money to utilise at his sweetwill.

Accordingly, the provisions should be construed.


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