Section 3 - Amendment of section 2.

Holding period reduction and exclusion of company buyback payments from income definition alters capital gains treatment.

The amendments add an explicit exclusion from the definition of income for payments by a company to purchase its own shares from a shareholder and omit a related clause in the long line. They also reduce the applicable holding period for capital asset classification, remove specified bracketed language from the first proviso, update the first proviso's benchmark term, insert deemed-text preservation language into the second proviso referencing the pre-amendment form, and omit the third proviso, thereby revising eligibility and timing rules for capital gains treatment.