section 47

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akshay (Querist)
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21 September 2010 "transfer under a gift or an irrevocable trust of a capital asset being shares ,debentures or warrants alloted by company directly or indirectly to its employees under esop in accordance with the guidelines issued by central govt"
will these r regarded as transfer or not

Aditya Maheshwari

Aditya Maheshwari (Expert)
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21 September 2010 Yes it will be considered ass transfer as it is execption to section 47(iii)

(iii) any transfer of a capital asset under a gift or will or an irrevocable trust :

7[Provided that this clause shall not apply to transfer under a gift or an irrevocable trust of a capital asset being shares, debentures or warrants allotted by a company directly or indirectly to its employees under 8[any Employees’ Stock Option Plan or Scheme of the company offered to such employees in accordance with the guidelines issued by the Central Government in this behalf];]

akshay

akshay (Querist)
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21 September 2010 thnx a lot but can u plz explain its exact meaning or interpretation in some detail

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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21 September 2010 If shares alloted as ESOP are gifted then it is considered as transfer and liable for taxation as capital gains.

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