Transfer of a capital asset includes:
1. Sale, exchange, relinquishment (Surrender) of the asset;
2. Extinguishment of any rights in the asset (reducing any right on the asset);
3. Compulsory acquisition of an asset;
4. Conversion or treatment of any capital asset into or as stock in trade of a business;
5. Maturity or redemption of zero-coupon bonds;
6. Any other transaction which allows to take or retain the possession of the immovable property in part performance of the contract as per sec 53A of the Transfer of Property Act;
7. Any other transaction which has the effect of transferring or enabling the enjoyment of an immovable property whether by way of becoming a member, or acquiring shares in a cooperative society, company or any other association by way of any agreement or arrangement;
If any capital asset is transferred by way of gift or will or inheritance, this shall not be treated as a transfer;
If an asset transferred is not a capital asset, capital gain provisions shall not apply.
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