Types of Capital Asset - (New) Section 2(67) and 2(101) / (Old) Section 2(29AA) and 2(42A)

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....riod for which - • (I) the asset was held by the previous owner referred to in section 73(1)(Table: Sl. No. 1), for a capital asset which becomes the property of the assessee in the circumstances mentioned in the said section; • (II) the share or shares in the amalgamating company were held by the assessee, for a capital asset being a share or shares in an Indian company, which becomes the property of the assessee in consideration of a transfer referred to in section 70(1)(f); • (III) the share or shares held in the demerged company were held by the assessee, for a capital asset being a share or shares in an Indian company, which becomes the property of the assessee in consideration of a demerger; • (IV) the person was a member of a recognised stock exchange in India immediately before its demutualisation or corporatisation, for a capital asset, being trading or clearing rights of that recognised stock exchange, acquired by a person pursuant to such demutualisation or corporatisation of that recognised stock exchange; • (V) the person was a member of a recognised stock exchange in India immediately before it....

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.... such financial asset; • (III) the date of the offer of the right to subscribe to any financial asset which is renounced in favour of any other person by the company or institution, as the case may be, making such offer, for a capital asset, being such right; • (IV) the date of the allotment of a financial asset allotted without any payment and on the basis of holding of any other financial asset, for a capital asset being such financial asset; • (V) the date of allotment or transfer of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer free of cost or at concessional rate to his employees (including former employee or employees), for a capital asset being such specified security or sweat equity shares; • (VI) the date on which a request for the redemption was made, for a capital asset, being share or shares of a company, which is acquired by the non-resident assessee on redemption of Global Depository Receipts referred to in section 209(1)(Table: Sl. No. 2) held by such assessee; • (D) for capital assets other than those mentioned in items (A) to (....

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....d as short term capital asset- (i) a security listed in a recognised stock exchange in India;  (ii) unit of the Unit Trust of India established under the Unit Trust of India Act, 1963 (iii) a unit of an equity oriented fund; (iv) zero coupon bonds. [ First proviso ] B. The second proviso to Section 2(42A) operates as a beneficial transitional provision. It temporarily reduced the holding period from thirty-six months to twelve months for • Shares of a company not listed on a recognised stock exchange; and • Units of a Mutual Fund specified under section 10(23D). transferred between 1 April 2014 and 10 July 2014. Consequently, such assets could qualify as long-term capital assets even if held for more than twelve months but less than thirty-six months. C. In case of Market Linked Debenture [ Section 50AA ] Notwithstanding anything contained in clause (42A) of section 2 or section 48, where the capital asset- (a) is a unit of a Specified Mutual Fund acquired on or after the 1st day of April, 2023 or a Market Linked Debenture; or (b) is an unlisted bond or an unlisted deben....

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....st day of April, 2023 or a Market Linked Debenture, the full value of consideration received or accruing as a result of the transfer or redemption or maturity of such debenture or unit as reduced by- (i) the cost of acquisition of the debenture or unit; and (ii) the expenditure incurred wholly and exclusively in connection with such transfer or redemption or maturity, shall be deemed to be the capital gains arising from the transfer of a short-term capital asset Determination of period inf the following specified Capital asset In determining the period for which any capital asset is held by the assessee- • (a) in the case of a share held in a company in liquidation, there shall be excluded the period subsequent to the date on which the company goes into liquidation ; • (b) in the case of a capital asset which becomes the property of the assessee in the circumstances mentioned in sub-section (1) of section 49, there shall be included the period for which the asset was held by the previous owner referred to in the said section ; • (ba) in the case of a capital asset referred to in clause (via) of sectio....

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....ere shall be included the period for which the person was a member of the recognised stock exchange in India immediately prior to such demutualisation or corporatisation; • (hb) in the case of a capital asset, being any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer free of cost or at concessional rate to his employees (including former employee or employees), the period shall be reckoned from the date of allotment or transfer of such specified security or sweat equity shares. • (hc) in the case of a capital asset, being a unit of a business trust, allotted pursuant to transfer of share or shares as referred to in clause (xvii) of section 47, there shall be included the period for which the share or shares were held by the assessee; • (hd) in the case of a capital asset, being a unit or units, which becomes the property of the assessee in consideration of a transfer referred to in clause (xviii) of section 47, there shall be included the period for which the unit or units in the consolidating scheme of the mutual fund were held by the assessee; • (he) in the case of a cap....

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....planation to clause (d) of section 115WB(1). Explanation 4.-For the purposes of this clause, the expression "equity oriented fund" shall have the meaning assigned to it in clause (a) of the Explanation to section 112A; Long term capital asset [ Section 2(29AA) ] W.e.f. 23.07.2024 An asset other than short term capital asset is regarded as a long term capital asset. Thus, a capital assets held by an assessee for more than 12 or 24, as the case may be, month immediately preceding the date  of its transfer is a long-term capital asset. Upto 22.07.2024 An asset other than short term capital asset is regarded as a long term capital asset. Thus, a capital assets held by an assessee for more than 12 or 36, , as the case may be, month immediately preceding the date  of its transfer is a long-term capital asset. Other Point Applicability of tax on capital gain in the hands of unit holder where the term of the units of mutual fund under the fixed maturity plans has been extended [ Circular No. 06/2015 dated 09.04.2015 ] • FMPs are closed ended funds having a fixed maturity date wherein the duration of investment is decided upfront....