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Method of determination of period of holding of capital assets in certain cases

Rule 6 — Method of determination of period of holding of capital assets in certain cases

Parent Act Section(s): Section 2, Section 67, Section 73

Full Text

  1. Method of determination of period of holding of capital assets in certain cases.– (1) For the purposes of section 2(101)(c)(D), the period for which such capital asset is held by an assessee, shall be determined in accordance with the provisions of this rule. (2) For the capital asset mentioned in column B of the Table below, the period for which the capital asset is held by the assessee shall be determined in accordance with column C thereof: Table Sl.No. Nature of Assets Period of holding A B C
  2. Shares or debentures of a company, which The period of holding shall include the period for which the becomes the property of the assessee under bond, debenture, debenture-stock or deposit certificate, as the circumstances mentioned in section the case may be, was held by the assessee prior to the 70(1)(z). conversion.
  3. Capital asset declared under the Income (i) In the case of an immovable property, the period for Declaration Scheme, 2016 made under the which such property is held is to be reckoned from the Finance Act, 2016 (28 of 2016). date on which such property is acquired, if the date of acquisition is evidenced by a deed registered with any authority of a State Government; and (ii) in any other case, the period for which such asset is held shall be reckoned from the 1st June, 2016.
  4. Capital asset which became the property of The period of holding shall include the following: the Indian subsidiary company in (i) the period for which the asset was held by the said consequence to conversion of a branch of a branch of the foreign company; or foreign company referred to in section (ii) the period for which the asset was held by the previous 219(1). owner, if any, who has acquired the capital asset by a mode of acquisition referred to in section 73(1) [Sl.No.1. C.A] or section 219(1). (3) In case of the amount which is chargeable to income-tax as income of a specified entity under section 67(10) under the head ―Capital gains‖,– (a) the amount or a part of it shall be considered to be from transfer of short-term capital asset, if it is attributed to,– (i) the capital asset which is short-term capital asset at the time of taxation of amount under section 67(10); or (ii) capital asset forming part of block of asset; or (iii) capital asset being self-generated asset and self-generated goodwill as defined in section 67(11); and (b) the amount or a part of it shall be considered to be from transfer of long-term capital asset or assets, if it is attributed to capital asset which is not covered by sub-clause (i) of clause (a) and is long-term capital asset at the time of taxation of amount section 67(10).

Cross-References

Act Sections Referenced

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Practical Notes

[To be populated — interpretive notes, circular references, case law pointers]

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