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Govt Exempts Capital Gains on transfer of Capital Assets to NTPC Green Energy Limited by NTPC Ltd

govt-exempts-capital-gains-on-transfer-of-capital-assets-to-ntpc-green-energy-limited-by-ntpc-ltd

CBDT vide Notification No. 63/2022 dated 15.06.2022 exempts capital gains on the transfer of capital asset from NTPC Limited, being transferor public sector company, to NTPC Green Energy Limited, being transferee public sector company, under the plan approved by the Central Government.


This has been done by exempting the transfer of capital assets to the transferred company under section 47(viiaf) of the Income-tax Act, 1961.



Section 47 of the Act excludes certain transactions from the purview of ‘transfer’ and when the transfer of any capital assets is not regarded as a transfer under the Act, capital gains do not arise thereon.


Clause (viiaf) of section 47 was inserted in the Act by the Finance Act, 2021. This amendment was not there in the Finance Bill, 2021 when the same was introduced in the Parliament on 1st February, 2021. This was introduced as a government amendment at the time of passing of the Finance Bill, 2021 by the Loshabha on 23.03.2021.


This clause states that any transfer of a capital asset, under a plan approved by the Central Government, by a public sector company to another public sector company notified by the Central Government for the purposes of this clause or to the Central Government or to a State Government shall not be regarded as transfer under the Act.


Hence, there will be no capital gains on the transfer of capital assets by NTPC Limited to the NTPC Green Energy Limited as the same is under a plan approved by the central Government and is so notified under section 47(viiaf).


Read the full text of CBDT Notification No. 63/2022 dated 15.06.2022 on Exemption of Capital Gains on transfer of Capital Assets to NTPC Green Energy Limited by NTPC Ltd.


MINISTRY OF FINANCE 

(Department of Revenue) 

(CENTRAL BOARD OF DIRECT TAXES) 


NOTIFICATION 


New Delhi, the 15th June, 2022 


INCOME-TAX


S.O. 2754(E).—In exercise of the powers conferred by clause (viiaf) of section 47 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the transfer of capital asset from NTPC Limited (PAN: AAACN0255D), being transferor public sector company, to NTPC Green Energy Limited (PAN: AAICN1737G), being transferee public sector company, under the plan approved by the Central Government on 21st day of March, 2022, for the purposes of the said clause.


2. This notification shall come into force from the date of its publication in the Official Gazette.


[Notification No. 63/2022/F. No. 370142/21/2022-TPL(Part 3)] 

UMME FARDINA ADIL, Under Secy.


Download CBDT Notification No. 63/2022 dated 15.06.2022 on Exemption of Capital Gains on transfer of Capital Assets to NTPC Green Energy Limited by NTPC Ltd. in PDF format

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