Case |
Exclusion / Inclusion of Period |
(i) Shares held in a company in liquidation |
Exclude the period subsequent to the date of liquidation |
(ii) Property acquired in any mode given under section 49(1) (e.g. by way of gift will, etc.) |
Include the holding period of previous owner also. |
(iii) Shares in an Indian Amalgamated Company acquired in a scheme of Amalgamation |
Include the holding period of shares in the Amalgamating Company by the Assessee. |
(iv) Shares in Indian Resulting company acquired in case of demerger |
include the holding period of shares in the Demerged Company by the Assessee |
(v) (a) Trading or clearing rights of recognised stock exchange pursuant to its demutualisation or corporatisation |
Include the period for which the person was a member of the recognised stock exchange in India |
(b) equity shares in a company acquired by a person pursuant to the demutualisation or corporatisation of recognised stock exchange |
Include the period for which the person was a member of the recognised stock exchange in India |
(vi) Capital asset, being a unit of a business trust, allotted pursuant to transfer of share or shares as referred to in section 47(xvii) |
Include the period for which the share or shares were held by the assessee. |
(vii) Unit or units, which becomes the property of the assessee in consideration of a transfer referred to in section 47(xviii) |
Include the period for which the unit or units in the consolidating scheme of the mutual fund were held by the assessee |
(ix) Share or debenture of a company, which becomes the property of the assessee in the circumstances mentioned in section 47(x) of the Act. (le. conversion of bonds or debentures into shares or debentures of the same_company) |
Include the period for which the bond, debenture, debenture-stock or deposit certificate, as the case may be, was held by the assessee prior to the conversion. |
(x) In the case of a capital asset, being equity shares in a company, which becomes the property of the assessee in consideration of a transfer referred to in section 47(xb) (i.e. conversion of preference share into equity share) |
Include the period for which the preference shares were held by the assessee |
(xi) 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 section 47(xix) (i.e. transfer of units held in the consolidating plan of a mutual fund scheme to consolidated plan of the scheme). |
Include the period for which the unit or units in the consolidating plan of a mutual fund scheme were held by the assessee |
The period of Holding , in the following circumstances will be computed as under :
1. |
Right to subscribe to shares or any other securities(may be called as financial assets subscribed to by the assessee on the basis of right to subscribe to such financial assets. |
The period shall be reckoned from the date of allotment of such financial asset. |
2 |
Right to subscribe to share or any other securities acquired by a person in whose favour the right has been renounced by the existing holder. |
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3 |
Period of holding of the right by a person who has renounced the right, |
The period shall be reckoned from the date of offer of such right by the company or institution to the date of renouncemern, which in normal circumstances will be short-term. |
4 |
Period of holding of a financial asset allotted without any payment and on the basis of holding of any other financial asset e.g. bonus shares. |
The period will be reckoned from the dare of allotment of such financial asset (not from the date of allotment of the original shares). |
5. |
Period of holding of specific security or sweat equity shares allotted or transferred, directly or indirectly, by the employer free of cost or at a concessional rate to his employees (including former employees). |
The period shall be reckoned from the date of allotment or transfer of such specific security or sweat equity share. |
6. |
Share or shares of a company, which is acquired by the non-resident assessee on redemption of Global Depository Receipts referred to in section 11 5AC( 1 )(b) |
The period shall be recknoned from the date on which a request for such redemption was made |
