Comparison of Section 2(22) "Capital Assets" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... therefore affect taxpayers, tax administrators and intermediaries such as FIIs, insurers and funds. Effective dates or commencement dates are Not stated in the document. Background & Scope Statutory hook: definitions provision contained in Clause/Section 2 of the respective instrument. Coverage: comprehensive list of defined terms used throughout the income-tax statute, including "capital asset" at clause/section (22). The texts include sub-definitions, cross-references to other scheduled items and to provisions of other statutes (Companies Act, SEBI Act, FEMA, etc.). The texts supply detailed inclusions and exclusions relevant for chargeability and computation of capital gains. Any legislative intent beyond the text is Not stated in the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of art etc.) * agricultural land in India, unless situated in specified urban or peri-urban areas (distance/population criteria) * Gold Deposit Bonds / deposit certificates under specified schemes (subject to notification) Specific wording and scope of some provisos differ between the Bill and the Act; detailed differences follow. Illustrations * Example 1: A share held by an FII - both texts include securities held by certain foreign institutional investors within the definition, thereby making such shares capital assets for capital gains purposes. * Example 2: A painting held for personal use - both texts treat such work of art as excluded from "personal effects" exclusions (i.e., works of art are excluded from "personal ef....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nts to be treated as capital assets; the Bill's language is narrower/less explicit on IFSC reference. This clarifies tax treatment for funds operating under IFSC regime and reduces interpretive uncertainty for such funds. (Textual difference explicitly shown in the Act.) * Unit-linked insurance policy wording (22)(c): The Bill specifies "any unit linked insurance policy issued on or after 1st February, 2021 to which exemption under Schedule II (Table: Sl. No. 2) does not apply." The Act states "any unit linked insurance policy to which exemption under Schedule II (Table: Sl. No. 2) does not apply" (without the "issued on or after 1st February, 2021" temporal qualifier). * Practical impact: the Act's removal of the temporal q....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat constitutes "personal effects". * Cross-references, terminology modernisation and additional inclusions (Act): The Act adds or modifies some cross-references and parenthetical clarifications (for example, a more expansive definition of "securities" consistent with section references, and explicit inclusion of "property includes any rights in or in relation to an Indian company"). * Practical impact: these drafting adjustments reduce potential interpretive gaps and align the definition with other restructured parts of the Act. The Bill text is somewhat older in phrasing; the Act text reflects finalised cross-references and added coverage (e.g., explicit mention of IFSC in the securities limb). * Minor drafting differences els....