What is transfer of a capital asset?
Transfer includes sale, exchange or relinquishment of the capital asset or the extinguishments of any rights therein or compulsory acquisition thereof under any law. In a case where an asset is converted by the owner or treated by him as stock-in-trade of a business carried on by him, such conversion or treatment by him, is also treated as transfer. However, the following specific transactions are not regarded as transfer eg(a) Any distribution of capital assets on total or partial partition of an HUF(a) any transfer of a capital under a gift or will or an irrevocable trust except shares, debentures or warrants allotted to employees under approved ESOP scheme, (b) issue of shares by the resulting or amalgamated company in lieu of shares held in the demerged or amalgamating company (provided in case of amalgamation, the amalgamated company is an Indian company) (c) any transfer by way of conversion of bonds or debentures of a company into shares or debentures of that company In case of
