Whether conversion of convertible preference shares into equity shares shall attract Capital Gains or any other tax if it is converted after 1 year ?
HARISH KUMAR MAHESHWARI (CA) (40 Points)
15 February 2009Whether conversion of convertible preference shares into equity shares shall attract Capital Gains or any other tax if it is converted after 1 year ?
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 16 February 2009
Conversion of preference shares into equity shares is treated as transfer and is liable for capital gain tax as same is not covered in the provisions of Sec.47 of the I Tax Act, 1961.
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 17 February 2009
As conversion of preference shares into equity amounts to their redemption thereof........and redemption of preference shares amounts to transfer within the meaning of SEc.2(47)....
CAclubindia
