The Central Board of Indirect Taxes in its notification dated 5th March 2020 has listed out certain transactions which are not regarded as transfer.
Many transactions are not considered to be transferred for purposes of capital gains. Some of the relevant transactions which are not regarded as transfer are notified hereby, namely:
- foreign currency denominated bond;
- unit of a Mutual Fund;
- unit of a business trust;
- foreign currency denominated equity share of a company;
- unit of Alternative Investment Fund,
The above transactions are listed on a recognized stock exchange located in any International Financial Services Centre in accordance with the regulations made by the Securities and Exchange Board of India under the Securities and Exchange Board of India Act 1992 (15 of 1992) or the International Financial Services Centres Authority under the International Financial Services Centres Authority Act 2019 (50 of 2019), as the case may be.
This notification shall be in force from 1st April 2020.
Click here to read the Notification.
