National Defence Gold Bonds, 1980-Transfer of gold after redemption-Date of acquisition of gold for the purpose of capital gains-Instruction regarding

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....ernment of India had issued in the year 1965, National Defence Gold Bonds, 1980. These Bonds were redeemable after 15 years, i.e., on or after 27th October, 1980. It was clarified in the Press Communique bearing No. MMS/MMM/ANT/361/3 dated 22-9-1980, issued by the Department of Economic Affairs, Ministry of Finance, that: "No capital gains will arise when the Bonds are exchanged for gold on redem....

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....he market value of the bonds on the date of redemption. The material date in this case would, therefore, be the date of redemption of gold bonds which would be treated as the date of acquisition of the gold. As per section 2(42A), "Short-term capital asset" means a capital asset held by an assessee for not more than 36 months immediately preceding the date of transfer. The question as to whether t....