Report No. 265

7. The Finance Act, 2012

The word 'transfer' has been defined under section 2(47) of the Act 1961. Explanation II thereof was inserted by the Finance Act 2012 (w.e.f. 1.4.1962). It defines the term transfer so as to include and shall be deemed to have always included disposing of or parting with an asset or any interest therein, or creating any interest in an asset, m any manner whatsoever directly or indirectly, absolutely or conditionally, voluntarily or involuntarily, by way of agreement (whether entered into in India or outside India), or otherwise not withstanding that such transfer of rights has been characterised as being effected or dependent upon or flowing from the transfer of a share or shares of a company registered or incorporated outside India.