India - Income Tax Act 2010 - Saarc

S. 2(42A) I.T. ACT, 1961 1.263[Provided that in the case of a share held in a company 4 [or any othersecurity listed in a recognised stock exchange in India or a unit of theUnit Trust of India established under the Unit Trust of India Act, 1963(52 of 1963) or a unit of a Mutual Fund specified under clause (23D)of section 10] 5 [or a zero coupon bond], the provisions of this clauseshall have effect as if for the words “thirty-six months”, the words“twelve months” had been substituted.]6[Explanation 1].—(i) In determining the period for which any capitalasset is held by the assessee—(a) in the case of a share held in a company in liquidation, there shallbe excluded the period subsequent to the date on which thecompany goes into liquidation ;(b) in the case of a capital asset which becomes the property of theassessee in the circumstances mentioned in 7 [sub-section (1)] ofsection 49, there shall be included the period for which the assetwas held by the previous owner referred to in the said section ;8[(c) in the case of a capital asset being a share or shares in an Indiancompany, which becomes the property of the assessee inconsideration of a transfer referred to in clause (vii) of section 47,there shall be included the period for which the share or sharesin the amalgamating company were held by the assessee ;]9[(d) in the case of a capital asset, being a share or any other security(hereafter in this clause referred to as the financial asset) subscribedto by the assessee on the basis of his right to subscribe tosuch financial asset or subscribed to by the person in whosefavour the assessee has renounced his right to subscribe to suchfinancial asset, the period shall be reckoned from the date ofallotment of such financial asset ;(e) in the case of a capital asset, being the right to subscribe to anyfinancial asset, which is renounced in favour of any other person,the period shall be reckoned from the date of the offer of suchright by the company or institution, as the case may be, makingsuch offer ;]10[(f) in the case of a capital asset, being a financial asset, allottedwithout any payment and on the basis of holding of any otherfinancial asset, the period shall be reckoned from the date of theallotment of such financial asset ;]11[(g) in the case of a capital asset, being a share or shares in an Indiancompany, which becomes the property of the assessee in consi-3. Inserted by the Finance Act, 1987, w.e.f. 1-4-1988.4. Inserted by the Finance Act, 1994, w.e.f. 1-4-1995.5. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.6. Existing Explanation renumbered as Explanation 1 by the Finance Act, 1994, w.e.f.1-4-1995.7. Substituted for “clauses (i) to (iii)” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.8. Inserted, ibid.9. Inserted by the Finance Act, 1994, w.e.f. 1-4-1995.10. Inserted by the Finance Act, 1995, w.e.f. 1-4-1996.11. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000.