12
GO BACK TO INDEX

Section - 2 (42-A) – definition of short term capital asset amended - Incentives for Promoting Investment in immovable property

 

i) According to the existing provisions in the case of immovable properties being land, building or both, an assessee is required to hold the asset for more than 36 months in order to qualify it as a long term asset. It is proposed to modify the provisions by reducing the required period of holding from the existing 36 months to 24 months. - w.e.f - 1st April, 2018.

 

ii) According to the proposed provisions in the section 47(xb), any transfer of preference shares of a company by way of conversion into equity shares of the company will not be considered as transfer. Consequential clause is proposed that period for which the preference shares were held by the assesse will be included in the holding period.

 

The amendment will be effective from 1st April 2018. 

 

iii) According to the existing provisions contained in section 47(xix), transfer of a unit of a capital asset in the consolidating plan of mutual fund scheme of the unit holder is not considered as a transfer. It is proposed to include the period of holding of the unit by the unit holder in the holding period.

 

The amendment will be effective from 1st April 2018.


GO BACK TO INDEX

17