Comparison of Section 2(101) "short-term capital asset" between the Income Tax Act, 2025 (as passed) and the Income Tax Bill, 2025 (as originally introduced).

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.... of securities, units and specified bonds. Effective date or commencement details are Not stated in the document. Background & Scope The provision appears in the definitional section (Section/Clause 2) of the proposed/ enacted income-tax statute and operates as a threshold rule for distinguishing short-term from long-term capital assets. It is linked to several substantive provisions referenced elsewhere (for example, sections governing capital gains and definitions such as "equity oriented fund" and "security"). The text supplies detailed rules for computing the period of holding in a number of specified situations (aggregations, conversions, allotments, transfers on corporate events, etc.). Statutory Provision Mode Text & Scope Secti....

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....he holding-period computation to established tax events. The legislative approach is consistent with traditional anti-abuse and continuity principles in capital gains taxation. Exceptions/Provisos Not stated in the document: any transitional provisions, grandfathering rules, or special exceptions beyond the enumerated items. The provision does not itself state specific exemptions or alternative treatments other than the twelve-month reduction for the specified categories and the listed inclusions/exclusions in determining holding period. Where the provision refers to "in such manner, as may be prescribed" or to items "as may be prescribed", the details of the prescription (rules) are Not stated in the document. Illustrations * Exampl....

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....shold: Both texts retain the core rule: default short-term period = 24 months; shortened to 12 months for listed securities, UTI units, units of equity-oriented funds and zero-coupon bonds. There is no substantive change in these core thresholds between the old Bill text and the passed Act text as reproduced in the documents. * Detailing of holding-period computations: Both texts contain substantially similar lists of inclusions and exclusions when computing the period of holding (liquidation exclusion; carry-over of prior owner holdings in amalgamations/demergers; demutualisation; units/allotments; GDR redemption; conversion events; catch-all for prescribed manner). The ordering and numbering differ slightly as drafting variants, but the....

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....n, demerger, redemption), and predecessor ownership histories important. The text supports continuity of holding periods across such events; supporting documents will be necessary to substantiate inclusion/exclusion claims under clause (c). * Transactions around corporate events: The provision reinforces that corporate reorganisations and allotments will not create artificial breaks in holding period for capital gains purposes. Taxpayers should track and preserve corporate scheme documents, share allotment records, demerger/amalgamation orders and valuations used in accounting (revaluations are disregarded for some calculations as noted elsewhere in Section 2 but specific interactions are Not stated in the document beyond the listed items....