Income Tax Act, 2025
Section 5: Ins. by Act 28 of 2016, s. 28 (w.e.f. 12017).
5. Ins. by Act 28 of 2016, s. 28 (w.e.f. 12017).
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with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made under
the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(b) “consolidated plan” means the plan with which the consolidating plan merges or which is
formed as a result of such merger;
(c) “mutual fund” means a mutual fund specified under clause (23D) of section 10.]
1[47A. Withdrawal of exemption in certain cases.—(1) Where at any time before the expiry of a
period of eight years from the date of the transfer of a capital asset referred to in clause (iv) or, as the case
may be, clause (v) of section 147,—
(i) such capital asset is converted by the transferee company into, or is treated by it as, stock-intrade of its business; or
(ii) the parent company or its nominees or, as the case may be, the holding company ceases or
cease to hold the whole of the share capital of the subsidiary company,
the amount of profits or gains arising from the transfer of such capital asset not charged under
section 45 by virtue of the provisions contained in clause (iv) or, as the case may be, clause (v) of
section 47 shall, notwithstanding anything contained in the said clauses, be deemed to be income
chargeable under the head “Capital gains” of the previous year in which such transfer took place.]
2[(2) Where at any time, before the expiry of a period of three years from the date of the transfer of a
capital asset referred to in clause (xi) of section 47, any of the shares allotted to the transferor in exchange
of a membership in a recognised stock exchange are transferred, the amount of profits and gains not
charged under section 45 by virtue of the provisions contained in clause (xi) of section 47 shall,
notwithstanding anything contained in the said clause, be deemed to be the income chargeable under the
head “Capital gains” of the previous year in which such shares are transferred.]
3[(3) Where any of the conditions laid down in the proviso to clause (xiii) or the proviso to clause
(xiv) of section 47 are not complied with, the amount of profits or gains arising from the transfer of such
capital asset or intangible asset not charged under section 45 by virtue of conditions laid down in the
proviso to clause (xiii) or the proviso to clause (xiv) of section 47 shall be deemed to be the profits and
gains chargeable to tax of the successor company for the previous year in which the requirements of the
proviso to clause (xiii) or the proviso to clause (xiv), as the case may be, are not complied with.]
4[(4) Where any of the conditions laid down in the proviso to clause (xiiib) of section 47 are not
complied with, the amount of profits or gains arising from the transfer of such capital asset or intangible
assets or share or shares not charged under section 45 by virtue of conditions laid down in the said
proviso shall be deemed to be the profits and gains chargeable to tax of the successor limited liability
partnership or the shareholder of the predecessor company, as the case may be, for the previous year in
which the requirements of the said proviso are not complied with.]
“consolidated plan” means the plan with which the consolidating plan merges or which is
formed as a result of such merger;
“mutual fund” means a mutual fund specified under clause
of section 10.]
1[47A. Withdrawal of exemption in certain cases.—
Where at any time before the expiry of a
period of eight years from the date of the transfer of a capital asset referred to in clause
or, as the case
may be, clause
of section 147,—
such capital asset is converted by the transferee company into, or is treated by it as, stock-intrade of its business; or
the parent company or its nominees or, as the case may be, the holding company ceases or
cease to hold the whole of the share capital of the subsidiary company,
the amount of profits or gains arising from the transfer of such capital asset not charged under
section 45 by virtue of the provisions contained in clause
or, as the case may be, clause
of
section 47 shall, notwithstanding anything contained in the said clauses, be deemed to be income
chargeable under the head “Capital gains” of the previous year in which such transfer took place.]
2[
Where at any time, before the expiry of a period of three years from the date of the transfer of a
capital asset referred to in clause
of section 47, any of the shares allotted to the transferor in exchange
of a membership in a recognised stock exchange are transferred, the amount of profits and gains not
charged under section 45 by virtue of the provisions contained in clause
of section 47 shall,
notwithstanding anything contained in the said clause, be deemed to be the income chargeable under the
head “Capital gains” of the previous year in which such shares are transferred.]
3[
Where any of the conditions laid down in the proviso to clause
or the proviso to clause
of section 47 are not complied with, the amount of profits or gains arising from the transfer of such
capital asset or intangible asset not charged under section 45 by virtue of conditions laid down in the
proviso to clause
or the proviso to clause
of section 47 shall be deemed to be the profits and
gains chargeable to tax of the successor company for the previous year in which the requirements of the
proviso to clause
or the proviso to clause
Where any of the conditions laid down in the proviso to clause
of section 47 are not
complied with, the amount of profits or gains arising from the transfer of such capital asset or intangible
assets or share or shares not charged under section 45 by virtue of conditions laid down in the said
proviso shall be deemed to be the profits and gains chargeable to tax of the successor limited liability
partnership or the shareholder of the predecessor company, as the case may be, for the previous year in
which the requirements of the said proviso are not complied with.]