This Section is applicable to
However it does not include Companies where public is substantially interested
If shares received of a company*
for inadequate consideration of an amount >50000,
then it is taxable under Income from Other Sources
*Here Company does not include Companies where public is substantially interested
If fair market value
(If F.M.V = 40,000,
For Inadequate Consideration
F.M.V – Consideration)
This clause shall not apply to folllowing cases of transfer of shares in case of Amalgamation and Demerger
47(via) Transfer of shares held in an Indian company, in a scheme of amalgamation, by the amalgamating foreign company to an amalgamated foreign company.
47(vic) Transfer of shares held in an Indian company, in a scheme of demerger, by the demerged foreign company to a resulting foreign company.
47(vicb) Transfer by a shareholder, in a business reorganization, of shares held in the predecessor co-operative bank, in consideration of the allotment of shares in the successor co-operative bank.
47(vid) Transfer or issue of shares by the resulting company, in a scheme of demerger, to the shareholders of the demerged company in consideration ofdemerger of the undertaking.
47(vii) Transfer by a shareholder, in a scheme of amalgamation, of shares in the amalgamating company in consideration of allotment to him of shares in the amalgamated Indian company