Transfer of a Capital Asset,being(SPV)


Transfer of a Capital Asset,being(SPV)

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Transfer of a capital asset, being share of a special purpose vehicle (SPV) to a business trust in exchange of units allotted.

Transfer of a capital asset, being share of a special purpose vehicle (SPV) to a business trust in exchange of units allotted by that trust to the transferor not to be treated as transfer [Section47(xvii)] [W.e.f. A.Y. 2015-16]

 

 

Any transfer of a capital asset, being share of a special purpose vehicle to a business trust in exchange of units allotted by that trust to the transferor shall not be treated as a transfer. For details see point no. 54.

 

Explantion- For the purpose of this clause, the expression "special purpose vehicle" shall have the meaning assigned to it in the Explanation to clause (23FC) of section 10.

 

Consequently, section 49(2AC) has been inserted so as to provide that where the capital asset, being a unit of a business trust, became the property of the assessee in consideration of a transfer as referred to in section 47(xvii), the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share referred to in the said clause. For detail see Point no. 54. back

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