Income Tax Act, 2025
Section 5: Ins. by Act 10 of 1965, s. 15 (w.e.f. 11965).
5. Ins. by Act 10 of 1965, s. 15 (w.e.f. 11965).
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1[Provided that nothing contained in clause (iv) or clause (v) shall apply to the transfer of a capital
asset made after the 29th day of February, 1988, as stock-in-trade;]
2[(vi) any transfer, in a scheme of amalgamation, of a capital asset by the amalgamating company
to the amalgamated company if the amalgamated company is an Indian company;
3[(via) any transfer, in a scheme of amalgamation, of a capital asset being a share or shares held in
an Indian company, by the amalgamating foreign company to the amalgamated foreign company, if—
(a) at least twenty-five per cent of the shareholders of the amalgamating foreign company
continue to remain shareholders of the amalgamated foreign company, and
(b) such transfer does not attract tax on capital gains in the country, in which the
amalgamating company is incorporated;]
4[(viaa) any transfer, in a scheme of amalgamation of a banking company with a banking
institution sanctioned and brought into force by the Central Government under sub-section (7) of
section 45 of the Banking Regulation Act, 1949 (10 of 1949), of a capital asset by the banking
company to the banking institution.
Explanation.—For the purposes of this clause,—
(i) “banking company” shall have the same meaning assigned to it in clause (c) of section 5
of the Banking Regulation Act, 1949 (10 of 1949);
(ii) “banking institution” shall have the same meaning assigned to it in sub-section (15) of
section 45 of the Banking Regulation Act, 1949 (10 of 1949);]
5[(viab) any transfer, in a scheme of amalgamation, of a capital asset, being a share of a foreign
company, referred to in the Explanation 5 to clause (i) of sub-section (1) of section 9, which derives,
directly or indirectly, its value substantially from the share or shares of an Indian company, held by
the amalgamating foreign company to the amalgamated foreign company, if—
(A) at least twenty-five per cent. of the shareholders of the amalgamating foreign company
continue to remain shareholders of the amalgamated foreign company; and
(B) such transfer does not attract tax on capital gains in the country in which the
amalgamating company is incorporated;]
6[(vib) any transfer, in a demerger, of a capital asset by the demerged company to the resulting
company, if the resulting company is an Indian company;
(vic) any transfer in a demerger, of a capital asset, being a share or shares held in an Indian
company, by the demerged foreign company to the resulting foreign company, if—
(a) the shareholders holding not less than three-fourths in value of the shares of the demerged
foreign company continue to remain shareholders of the resulting foreign company; and
or clause
shall apply to the transfer of a capital
asset made after the 29th day of February, 1988, as stock-in-trade;]
2[
any transfer, in a scheme of amalgamation, of a capital asset by the amalgamating company
to the amalgamated company if the amalgamated company is an Indian company;
3[
any transfer, in a scheme of amalgamation, of a capital asset being a share or shares held in
an Indian company, by the amalgamating foreign company to the amalgamated foreign company, if—
at least twenty-five per cent of the shareholders of the amalgamating foreign company
continue to remain shareholders of the amalgamated foreign company, and
such transfer does not attract tax on capital gains in the country, in which the
amalgamating company is incorporated;]
4[
any transfer, in a scheme of amalgamation of a banking company with a banking
institution sanctioned and brought into force by the Central Government under sub-section
of
section 45 of the Banking Regulation Act, 1949 (10 of 1949), of a capital asset by the banking
company to the banking institution.
Explanation.—For the purposes of this clause,—
“banking company” shall have the same meaning assigned to it in clause
of section 5
of the Banking Regulation Act, 1949 (10 of 1949);
“banking institution” shall have the same meaning assigned to it in sub-section
of
section 45 of the Banking Regulation Act, 1949 (10 of 1949);]
5[
any transfer, in a scheme of amalgamation, of a capital asset, being a share of a foreign
company, referred to in the Explanation 5 to clause
of sub-section
of section 9, which derives,
directly or indirectly, its value substantially from the share or shares of an Indian company, held by
the amalgamating foreign company to the amalgamated foreign company, if—
at least twenty-five per cent. of the shareholders of the amalgamating foreign company
continue to remain shareholders of the amalgamated foreign company; and
such transfer does not attract tax on capital gains in the country in which the
amalgamating company is incorporated;]
6[
any transfer, in a demerger, of a capital asset by the demerged company to the resulting
company, if the resulting company is an Indian company;
any transfer in a demerger, of a capital asset, being a share or shares held in an Indian
company, by the demerged foreign company to the resulting foreign company, if—
the shareholders holding not less than three-fourths in value of the shares of the demerged
foreign company continue to remain shareholders of the resulting foreign company; and