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


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 .

  1. Income Tax
  2. Income from Capital Gains
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.