Amendment of section 47

Section 34 of the Finance Act, 1999 deals with amendment of section 47. Amendment of section 47. 34. In section 47 of the Income-tax Act, after clause (via), the following clauses shall be inserted with effect from the 1st day of April, 2000, namely :— "(vib) any transfer, in a demerger, of a capital asset by the demerged company to the resulting company, if the resulti

Amendment of section 47.

34. In section 47 of the Income-tax Act, after clause (via), the following clauses shall be inserted with effect from the 1st day of April, 2000, namely :—

"(vib) any transfer, in a demerger, of a capital asset by the demerged company to the resulting company, if the resulting company is an Indian company;

(vic) any transfer in a demerger, of a capital asset, being a share or shares held in an Indian company, by the demerged for­eign company to the resulting foreign company, if—

(a) at least seventy-five per cent of the shareholders of the demerged foreign company continue to remain shareholders of the resulting foreign company; and

(b) such transfer does not attract tax on capital gains in the country, in which the demerged foreign company is incorporat­ed :

Provided that the provisions of sections 391 to 394 of the Compa­nies Act, 1956 (1 of 1956) shall not apply in case of demergers referred to in this clause;

(vid) any transfer or issue of shares by the resulting company, in a scheme of demerger to the shareholders of the demerged company if the transfer or issue is made in considera­tion of demerger of the undertaking;".

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Section 34, The Finance Act, 1999.