Determine Period of Holding for Capital Asset

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....ny distribution of assets on the liquidation of a company; or (d) under a transfer to a revocable or an irrevocable trust; or (e) being a Hindu undivided family, by the mode referred to in section 99(3) after the 31st December, 1969; or (f) under any such transfer as is referred to in section 70(1)(a), (c), (d), (e), (g), (h), (i), (j), (l), (m), (n), (o), (t), (u), (v), (w), (zd), (ze) or (zf). Include period the asset was held by the previous owner B(II) Shares received in amalgamated company in exchange for shares of amalgamating company [Section 70(1)(f)] Include period for which shares of amalgamating company were held B(III) Shares received in resulting company pu....

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.... Include period for which EGR was held before conversion C(I) Capital asset arising from conversion of inventory into capital asset [Section 26(2)(j)] From the date of conversion/treatment as capital asset C(II) Rights issue shares/securities subscribed by assessee or renouncee From the date of allotment of shares/securities C(III) Right entitlement (right to subscribe) that is renounced From the date of the offer of the right to subscribe C(IV) Bonus shares/bonus securities allotted without payment From the date of allotment of bonus shares/securities C(V) ESOPs, specified securities or sweat equity shares allotted/transferred by employer From the date of allotment or t....

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....ign company; or (ii) the period for which the asset was held by the previous owner, if any, who has acquired the capital asset by a mode of acquisition referred to in section 73(1) [Sl.No.1. C.A] or section 219(1). Under Income Tax Act, 1961 [ Upto 31.03.2026 ] A holding period is the amount of time the investment is held by an investor, or the period between the purchase and sale of a security, The holding period of an investment is used to determine the taxing of capital gains or losses.  Different Situations How to calculate the period of holding Right Shares From the date of allotment of right shares. Bonus Shares From the date of allotment of bonus shares. Shar....

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....  by non-resident  assessee on redemption of Global Depository Receipts referred to in section 115AC(1)(b) held by such assessee) The period shall be reckoned from the date on which a request for such redemption was made. Transfer in shares and securities not given above • Date of purchase (through stock  exchange) of shares /securities Date of purchase by broker on behalf of investor Date of transfer (through stock exchange) of shares  and securities Date of broker's note provided such transaction are followed up by delivery of shares and also the transfer deeds. Date of purchase /transfer of shares /securities (transfer taken place directly between parities and not through stock e....

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....of a branch of a foreign company referred to in section 115JG(1) Include the period for which the asset was held by the said branch of the foreign company and by the previous owner. Period of holding of the units in the consolidated plan of mutual fund scheme  Period of holding shall include the period for which the units in consolidating plan of mutual fund scheme were held by the assessee. Capital asset referred to in clause (via) of section 28 The period shall be reckoned from the date of its conversion or treatment. Classification of Capital Assets For capital gain computation, assets are classified as short-term or long-term based on the holding period. This distinction is important since short-te....