Profit and Gain arising from the transfer of a capital effected in the previous year save as otherwise provided in sections 80g chargeable to income-tax under the head “Capital gains” and the income of the previous year which transfer took place. Not with standing anything contained in 80g registration:-
(1) Where any person receives at any time during any previous year any money or other assets under insurance from an insurer on account of damage to or destruction of any capital asset, result of –
(i) Flood, typhoon, hurricane, cyclone, earthquake or other convulsion of nature or
(ii) Riot or civil disturbance or
(iii) Accidental fire or explosion or
(iv) Action by an enemy or action taken in combating an enemy.
Then any profit or gains arising from receipt of such money or other assets be chargeable to income-tax under the head “Capital gains” and the income of such person of the previous year in which such money or other asset was received and for the purposes of section value of any money or the fair market value of other assets on the date of such receipt the full value of the consideration received or accruing as a result of the transfer of such capital asset.
Explanation:-For the purpose of this 80g transfer profits tonnage tax reserve expression “insurer” the meaning assigned to- (2) Not with standing anything contained in the profits or gains arising from the transfer by way of conversion by the owner of a capital asset or its treatment by him as stock-in-trade of a business carried by him chargeable to income-tax as his income of the previous year in which such stock in trade is sold or otherwise transferred by him and the purposes of 80g registration, the fair market value of the asset on the date of such conversion or treatment be full value of the consideration received or accruing as result of the transfer of the capital asset.
Where any person has at any time during previous year any beneficial interest in any securities then any profits or gains arising from transfer made by the depository or participant of such transfer took place and not be regarded as income of the depository who is registered owner of securities by virtue of 80g the cost of acquisition and the period of holding of any securities determined on the basis of first-in-first-out method. The profits or gains arising from the transfer of a capital asset by way of distribution of capital asset on the dissolution of a firm or other association of persons or body of individuals .