As Per The Income-tax Law, Gain Arising On Transfer Of Capital Asset Is Charged To Tax Under The Head “capital Gains”. What Constitutes ‘transfer’ As Per Income-tax Law?
Generally, transfer means sale, however, for the purpose of Income-tax Law "Transfer”, in relation to a capital asset, includes: Sale, exchange or relinquishment of the asset; Extinguishment of any rights in relation to a capital asset; Compulsory acquisition of an asset; Conversion of capital asset into stock-in-trade; Maturity or redemption of a zero coupon bond; Allowing possession of immovable properties to the buyer in part performance of the contract; Any transaction which has the effect of transferring an (or enabling the enjoyment of) immovable property; or Disposing of or parting with an asset or any interest therein or creating any interest in any asset in any manner whatsoever
