New Delhi, April 14 -- Asset transfers in India, including sales, exchanges, or gifts, are generally treated as capital gains and are taxable in the year of transfer. Reporting is mandatory in ITR-2 or ITR-3, depending on whether the income from the asset transfer is classified under capital gains or business income.

It refers to the legal transfer of ownership or control of assets, such as property and securities, from one person to another. It can be done within the family or with a non-family member, but separate rules exist in both cases.

Specific exemptions exist under Section 47 of the Income Tax Act. Under this provision, certain transactions are not treated as "transfers" for capital gains purposes and are exempt from capital ga...