Definition amendments: broaden treatment of accumulated profits, inventory valuation and capital asset holding period under income-tax.

Amendments to section 2 add Explanation 2A treating an amalgamated company's accumulated profits or losses as increased by the amalgamating company's accumulated profits at amalgamation. From April 1, 2019, clause (24) is expanded to include fair market value of inventory and specified compensation receipts, while clause (42A) is amended to reckon holding period for certain converted or treated capital assets from the date of conversion and to substitute a cross-reference to clause (a) of the Explanation to section 112A.

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