46A. Capital gains on purchase by company of its own shares
or other specified securities.- Where a shareholder
or a holder of other specified securities receives any consideration
from any company for purchase of its own shares or other specified
securities held by such shareholder or holder of other specified
securities, then, subject to the provisions of section 48,
the difference between the cost of acquisition and the value
of consideration received by the shareholder or the holder
of other specified securities, as the case may be, shall be
deemed to be the capital gains arising to such shareholder
or the holder of other specified securities, as the case may
be, in the year in which such shares or other specified securities
were purchased by the company.
Explanation.—For the purposes of this section, “specified
securities” shall have the meaning assigned to it in
Explanation to section 77A of the Companies Act, 1956 (1 of
1956).
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