(1) Notwithstanding anything contained in section, where the assets of a company are distributed to its shareholders on its liquidation, such distribution shall not be regarded as a transfer by the company for the purposes of section 45.
(2) Where a shareholder on the liquidation of a company receives any money or other assets from the company, he shall be chargeable to income-tax under the head “Capital gains”, in respect of the money so received or the market value of the other assets on the date of distribution, as reduced by the amount assessed as dividend within the meaning of sub-clause (c) of clause (22) of section 2 and the sum so arrived at shall be deemed to be the full value of the consideration for the purposes of section 48.
Section 46 Capital gains on distribution of assets by companies in liquidation
Section 46A Capital gains on purchase by company of its own shares or other specified securities
Section 47 Transactions not regarded as transfer
Section 47A Withdrawal of exemption in certain cases
Section 48 Mode of computation
Section 49 Cost with reference to certain modes of acquisition
Section 50 Special provision for computation of capital gains in case of depreciable assets