Further, it is chargeable to income-tax as income of such specified entity under the head ‘Profits and gains of business or profession’ or under the capital gains, in accordance with the provisions of this Act. It has also been provided that the fair market value of the capital asset or stock in trade or both, on the date of its receipt by the specified person, shall be deemed to be the full value of the consideration received or accruing as a result of such deemed transfer.

Similarly, the Finance Act 2021 substituted sub-section (4) of Section 45 of the Act. This newly substituted sub-section (4) now provides that where a specified person receives any money or capital asset or both from a specified entity, during the previous year, in connection with the reconstitution of such specified entity, then any profits or gains arising from receipt of such receipt by the specified person shall be chargeable to income-tax as income of the specified entity under the head Capital gains.

CBDT has further deemed that this income shall be the income of the specified entity of the previous year in which such money or capital asset or both were received by the specified person. A formula to calculate such profits and gains has also been provided in this subsection.

It has been further clarified that when a capital asset is received by a specified person from a specified entity in connection with the reconstitution of such specified entity, the provisions of sub-Section (4) of Section 45 of the Act shall operate in addition to the provisions of section 9B of the Act and the taxation under the said provisions thereof shall be worked out independently.

The substituted sub-Section (4) of Section 45 is also applicable for the assessment year 2021-22 and subsequent assessment years.

Source: https://www.zeebiz.com/personal-finance/income-tax/news-income-tax-new-portal-section-9b-inserted-cbdt-releases-guidelines-on-capital-gains-all-you-need-to-know-159961