Period of holding (s. 2(101) / s. 67(10))

Scope. Sub-rule (1) states that, for section 2(101)(c)(D), the period for which an assessee holds the capital asset is determined under this rule.

The table (sub-rule 2). For the assets in column B, the period of holding follows column C.

Asset in column B	Period of holding in column C
Shares or debentures of a company that become the assessee's property in the circumstances mentioned in section 70(1)(z)	Includes the period for which the bond, debenture, debenture-stock or deposit certificate, as the case may be, was held before the conversion
Capital asset declared under the Income Declaration Scheme, 2016 (Finance Act, 2016)	Immovable property: held from the date of acquisition if that date is evidenced by a deed registered with any State Government authority. Any other case: held from 1 June 2016
Capital asset that became the property of the Indian subsidiary company on conversion of a branch of a foreign company, as referred to in section 219(1)	Includes (i) the period the asset was held by the foreign company's branch, or (ii) the period held by the previous owner who acquired it by a mode referred to in section 73(1) [Sl. No. 1, C.A] or section 219(1)

Amounts taxed under section 67(10) (sub-rule 3). Where an amount is chargeable as the income of a specified entity under section 67(10) under the head "Capital gains":

• it is treated as arising from transfer of a short-term capital asset if attributed to a capital asset that is short-term when taxed under section 67(10), to a capital asset forming part of a block of assets, or to a self-generated asset or self-generated goodwill as defined in section 67(11); and
• it is treated as arising from transfer of long-term capital asset(s) if attributed to a capital asset outside the first of those categories that is long-term when taxed under section 67(10).