Transfer of Capital Asset From ‘NLCIL’ to ‘NIRL’ Shall Not Be Treated as Transfer for Purpose of Capital Gains | CBDT

Notification No. 122/2024, dated 27-11-2024

Section 47 of the Income Tax Act, 1961 provides a list of transactions that are not regarded as ‘transfer’ for the purpose of capital gains. Clause (viiaf) exempts certain transfers of capital assets by public sector companies from being treated as transfers, including those to a notified public sector company or to the Central/State Government.

In this regard, the Central Board of Direct Taxes (CBDT) has notified that the transfer of assets from NLC India Limited, being a transferor public sector company, to NLC India Renewables Ltd, being a transferee public sector company, under the plan approved by the Central Government on 1st day of August, 2024, for the purposes of this clause.

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