CONT….:
EXCEPTIONS: How ever, the following three asset will be called as SHORT TERM if the period of holding of these assets is less than or equal to 12 months, it will be called as LONG TERM if the period of holding is more than than 12 months. 1) Equity shares OR preference shares. 2) Debentures OR Government securities. 3) Mutual funds OR UTI. CONT….
PERIOD OF HOLDING:
Means a period starting from the date of acquisition of the asset and ending on the date of transfer of the asset. How ever in the following situations the PERIOD OF HOLDING (POH) ,will be calculated differently. 1) Period of holding in case of liquidation of the company: This will begin on the date of acquisition of shares, but will end on the date of liquidation 2) Period of holding in case of amalgamation of company: This will begin on the date of acquisition of shares of amalgamating company (old/vendor company) and not from the date of allotment of shares of amalgamated(new) company. PERIOD OF HOLDING
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3) Period of holding in case of demergers: If asseessee holds shares of a demerging company(old) which are cancelled as a result of demerger and shares of resulting company(new) are allotted to him then period of holding of shares of resulting company will begin from the date of acquisition of shares of demerging company and not from the date of allotment of the shares of resulting company. 4) Period of holding of bonus shares: This will begin on the date of allotment of bonus shares. CONT….
CONT…….:
5 ) Period of holding of right shares: Period of holding of right shares will begin on the date of allotment of right share. 6) Period of holding of “Right Entitlement”: It will begin on date on which the right offer or right entitlement is received from the company. CONT…….
Slide 6:
7) Period of holding in case of conversion of debentures into shares: It will begin on the date of conversion of debentures into shares ad not on the date of purchase