Capital Gain

Capital Gain
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at: https://taxguru.in/income-tax/capital-gain.html
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Income under the Capital Gains
Different situations How to calculate the period of

holding Shares held in a company in liquidation
The period subsequent to the date on which the
company goes into liquidation shall be excluded.
Capital asset which becomes the property of the
assessee in the circumstances mentioned in
section 49(1) read with section 47 [i.e., when an
asset is acquired by gift, will, succession,
inheritance or the asset is required at the time of
partition of family or under a revocable or
irrevocable trust or under amalgamation, etc.] The
period for which the asset was held by the
previous owner should be included (cost of
acquisition in this case shall be computed in the
manner provided in Para 4.10) Allotment of shares
in amalgamated Indian company in lieu shares
held in amalgamating company The period of
holding shall be computed from the date of
acquisition of shares in the amalgamating
company. Right shares The period of holding shall
be computed from the date of allotment of right
shares. Right entitlement The period of holding
will be considered from the date of offer to
subscribe to shares to the date when such right
entitlement is renounced by the person. Bonus
shares The period of holding shall be computed
from the date of allotment of bonus shares. Issue
of shares by the resulting company in a scheme of
demerger to the shareholders of the demerged
company The period of holding shall be computed
from the date of acquisition of shares in the
demerged company. Membership right held by a
member of recognised stock exchange In case of
shares as well as trading/clearing rights, the
period for which the person was a member of the
stock exchange immediately prior to such
demutualization/corporatization shall be included.
Flat in a co-operative society The period of holding
shall be computed from the date of allotment of
shares in the society. Sweat equity shares allotted
by employer The period of holding shall be
reckoned from the date of allotment or transfer of
such equity shares (applicable from the
assessment year 2008-09) Unit of a business trust
[allotted pursuant to transfer of shares as referred
to in section 47(xvii)] The period of holding shall
include the period for which shares were held by
the assessee. Conversion of preference shares into
equity shares The period of holding of equity
shares shall include the period for which
preference shares were held by the assessee Units
allotted to an assessee pursuant to consolidation
of two or more scheme of a mutual fund as
referred to in Section 47(xviii) The period of
holding of such units shall include the period for
which the unit or units in the consolidating
scheme of the mutual fund were held by the
assessee. Shares in a company acquired by the
non-resident assessee on redemption of Global
Depository Receipts referred to in Section
115AC(1)(b) The period of holding of such shares
shall be reckoned from the date on which a
request for such redemption was made.
Transactions in shares and securities not given
above: 1) Date of purchase (through stock
exchanges) of shares and Securities 2) Date of
transfer (through stock exchanges) of shares and
securities 3) Date of purchase/transfer of shares
and securities (transaction taken place directly
between parties and not through stock exchanges)
4) Date of purchase/sale of shares and securities
purchased in several lots at different points of
time but delivery taken subsequently and sold in
parts 5) Transfer of a security by a depository (i.e.,
demat account) a) Date of purchase by broker on
behalf of investor. b) Date of broker’s note
provided such transactions are followed up by
delivery of shares and also the transfer deeds. c)
Date of contract of sale as declared by parties
provided it is followed up by actual delivery of
shares and the transfer deeds. d) The FIFO
method shall be adopted to reckon the period of
the holding of the security, in cases where the
dates of purchase and sale cannot be correlated
through specific number of scrips. e) The period of
holding shall be determined on the basis of the
first-in-first-out method. Conversion of stock-in-
trade into capital asset The period of holding of
such converted asset shall be reckoned from the
date of conversion. Conversion of gold into
Electronic Gold receipt issued by Vault Manager
The period for which the assessee held the gold
before conversion into EGR would be included in
the period of holding of EGR Conversion of
Electronic Gold Receipt into gold The period for
which the assessee holds the EGR before
conversion to gold would be included in the period
of holding of gold
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at: https://taxguru.in/income-tax/capital-gain.html
Copyright © Taxguru.in

Capital Gain

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Different situations How to calculate the period of

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