Whether conversion of preference shares into ordinary shares is a transfer? Skorydov Tax Team Updated May 26, 2016 06:11 Follow Yes, any redemption or conversion of preference shares of a company in to ordinary shares shall be treated as transfer. Fair market value of equity shares as on the date of allotment shall be considered as the full sales consideration. Related articles Whether capital gains are taxable on accrual or receipt basis? Which documents are specified to establish a person’s identity while submitting Form No 60? Comments 0 comments Please sign in to leave a comment.