capital gains

vivek ananda (student) (173 Points)

14 November 2009  

 as per sec 2(47) of capital gains, transfer of a capital asset to a 100% subsidiary  is exempt from tax. But how can there be a 100% subsidiary? there must at least 2 (or) 7 members in a company. so how can a company avail this exemption? 

thanks in advance if you reply to it