India - Income Tax Act 2010 - Saarc

1.27 CH. I - PRELIMINARY S. 2(42A)deration of a demerger, there shall be included the period forwhich the share or shares held in the demerged company wereheld by the assessee ;]12[(h) in the case of a capital asset, being trading or clearing rights of arecognised stock exchange in India acquired by a person pursuantto demutualisation or corporatisation of the recognised stockexchange in India as referred to in clause (xiii) of section 47, thereshall be included the period for which the person was a memberof the recognised stock exchange in India immediately prior tosuch demutualisation or corporatisation;(ha) in the case of a capital asset, being equity share or shares in acompany allotted pursuant to demutualisation or corporatisationof a recognised stock exchange in India as referred to in clause(xiii) of section 47, there shall be included the period for which theperson was a member of the recognised stock exchange in Indiaimmediately prior to such demutualisation or corporatisation;]13[(hb) in the case of a capital asset, being any specified security or sweatequity shares allotted or transferred, directly or indirectly, by theemployer free of cost or at concessional rate to his employees(including former employee or employees), the period shall bereckoned from the date of allotment or transfer of such specifiedsecurity or sweat equity shares;](ii) In respect of capital assets other than those mentioned inclause (i), the period for which any capital asset is held by the assesseeshall be determined subject to any rules which the Board may makein this behalf.]14[Explanation 2.—For the purposes of this clause, the expression“security” 15 shall have the meaning assigned to it in clause (h) of section2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).]12. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.13. Inserted by the Finance Act, 2007, w.e.f. 1-4-2008.14. Inserted by the Finance Act, 1994, w.e.f. 1-4-1995.15. Clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956, defines“securities” as follows :‘(h) “securities” include—(i) shares, scrips, stocks, bonds, debentures, debenture stock or other marketablesecurities of a like nature in or of any incorporated company or otherbody corporate;(ia) derivative;(ib) units or any other instrument issued by any collective investment scheme tothe investors in such schemes;(ic) security receipt as defined in clause (zg) of section 2 of the Securitisation andReconstruction of Financial Assets and Enforcement of Security InterestAct, 2002;(id) units or any other such instrument issued to the investors under any mutualfund scheme;(ie) any certificate or instrument (by whatever name called), issued to an investorby any issuer being a special purpose distinct entity which possesses any debtor receivable, including mortgage debt, assigned to such entity, and acknowledgingbeneficial interest of such investor in such debt or receivable,including mortgage debt, as the case may be;(Contd. on p. 1.28)