Dilip (Working) (408 Points)
01 March 2010Conversion of bonds into equity shares are not considered as transfer u/s 47.
so same way want to know whether convertible preference share are covered u/s 47 or not ?
is the shareholder has to pay tax at the time of conversion of pref shares, if there is a gain at conversion price...
Amir
(Learner)
(4016 Points)
Replied 01 March 2010
Dear Dilip,
U r rite dat conversion of bond is covered by sec 47
But conversion of prefernce shares are not covered by Sec 47 & hence any such conversion would attract capital gains.
Now regarding sale consideration, this is d case of exchange of assets & in such cases generally the price of asset received is taken as "Sales Consideration"
CAclubindia
