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where a company wishes to enter into a merger or an acquisition, with another company with the intention of increasing its share capital that is mainly the meaning for transfer for the purpose of capital gain. the company acquires the capital of the company it acquires as well. You have certain exceptions to this core definition though, for example in the case of a demerger, when a demerged company transfers its capital asset that shall not be called a transfer for the purpose of capital gain.

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