Capital gain on conversion of debentures into shares

(i) Conversion of debentures into shares is exempted u/s 47(x)
(ii) In case of subsequent transfer by the transferee, the holding period in the hands of the transferee u/s 2(42A)
shall not include the holding period of the earlier asset.
(iii) Const of new asset the hands of the transferee u/s 49 shall be the cost at which old asset is converted.

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