section 47(xi)

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akshay (Querist)
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21 September 2010 can u please eloborately explain the following

transfer by exchange of a capital asset being membership of a recognised stock exchange for shares of a company to which such membership is trnsfrd

Aditya Maheshwari

Aditya Maheshwari (Expert)
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21 September 2010 Section reads as
27[(xi) any transfer made on or before the 31st day of December, 28[1998] by a person (not being a company) of a capital asset being membership of a recognised stock exchange to a company in exchange of shares allotted by that company to the transferor.

Explanation.—For the purposes of this clause, the expression “membership of a recognised stock exchange” means the membership of a stock exchange in India which is recognised under the provisions of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

If a person holding a membership card of a recognised stock exchange transfers his card in consideration of shares of the company then the same will not be treated as transfer and not liable to capital gains.

akshay

akshay (Querist)
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22 September 2010 company (in second last line)mean any co or that stock exchange co like nse

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 September 2010 any company.