“’Transfer’ means—
(a) the sale, exchange, relinquishment, or extinguishment of any rights in a capital asset;
(b) the gift of any such asset; and
(c) any other mode of transferring such asset or any interest therein.”

Explanation:
This provision establishes a very broad definition of “transfer” for the purposes of computing capital gains. It is not limited to a simple sale for money. Instead, any transaction that results in a change of the beneficial ownership of an asset is considered a transfer. This includes:

• Sale or Exchange: When you sell or exchange your asset for money or another asset.

• Relinquishment/Extinguishment: When you give up or lose your rights in the asset.

• Gift: When you transfer the asset without receiving any consideration, such as gifting it to a family member or through a will.

• Other Modes: Any other method by which the ownership or the right to enjoy the benefits of the asset is passed on to someone else.