As per Charging Section,Capital Gain is levied on Transfer of Assets
Transfer means not only sales but certain other things also as mentioned below
Section 2(47)
Definition of Transfer includes
1.Sale, Exchange Relinquishment of Capital assets
2.Extinguishment of right in an Capital assets
(destruction of asset or deduction in value of assets) .
3.Compulsory acquisition of Capital assets
This must be as per any law of government example land acquisition act.
4.Conversion of capital assets in to stock in trade
Or
Treatment of Capital asset as stock in trade.
5.Maturity or redemption of zero coupons bonds
6.Power of attorney
Though the property is not legally in the name of purchaser, still he will be treated as owner .
(Note:-Legally Power of Attorney is also called
Transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act,)
7.Membership of Co-operative Society
In case of co-operative society and company if a person acquires membership or purchases shares, he is allotted property.
In this case though legally the ownership is with the Co-operative society still the person acquiring it will be treated as owner
This transaction of acquiring membership or purchasing shares is called transfer .
