Amendment applicable from May, 2015 attempt
Amendment in section 2(42A)
According to section 2(42A), “short term capital asset”
means a capital asset held by an assessee for not more than 36 months immediately
prior to its date of transfer. Though, in some cases an asset held for not more
than 12 months is treated as short-term capital asset. The below table gives
the list of capital assets(before and after amendment) which are treated as
short-term capital assets if period of holding is not more than 12 months –
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If transfer takes place on or before July 10, 2014
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If transfer takes place after July 10, 2014
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1. Equity or preference shares in a company (whether shares are
listed or not)
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1. Equity or preference shares in a company (listed in
recognised stock exchange in India)
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2. Securities (like debentures, bonds, government securities,
derivatives, etc.) listed in a recognised stock exchange in India
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2. Securities (like debentures, bonds, government securities,
derivatives, etc.) listed in a recognised stock exchange in India
|
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3. Units of UTI (whether quoted or not)
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3. Units of UTI (whether quoted or not)
|
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4. Units of mutual funds specified under section 10(23D)
(whether quoted or not)
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4. Units of an equity oriented fund (whether quoted or not)
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5. Zero coupon bonds (whether quoted or not)
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5. Zero coupon bonds (whether quoted or not)
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Assets other than short-term capital assets are long-term
capital assets. After the aforesaid amendment (in case transfer takes place
after July 10, 2014), unlisted equity or preference shares will become
long-term capital assets only if period of holding is more than 36 months.
Similarly, unit of debt oriented fund will be treated as long-term capital
assets only if period of holding is more than 36 months.
The effect of amendment has been analysed in the below table:-
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Asset
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Date of purchase
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Date of transfer
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Short-term/long-term
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Assessment year
|
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Shares in X Ltd. (unlisted)
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26-Jun-13
|
28-Jun-14
|
Long-term
|
2015-16
|
|
Shares in X Ltd. (unlisted)
|
26-Jun-13
|
28-Jul-14
|
Short-term
|
2015-16
|
|
PNB mutual fund unlisted units (equity oriented)
|
4-Aug-12
|
15-Jul-14
|
Long-term
|
2015-16
|
|
PNB mutual fund unlisted units (equity oriented)
|
4-Aug-12
|
10-Jul-14
|
Long-term
|
2015-16
|
|
TATA mutual fund unlisted units (debt oriented)
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4-Aug-12
|
15-Jul-14
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Short-term
|
2015-16
|
|
TATA mutual fund unlisted units (debt oriented)
|
4-Aug-12
|
10-Jul-14
|
Long-term
|
2015-16
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