New Income Tax Rule 8AA “Method of determination of Holding Period of certain Capital Assets” notified by CBDT
The CBDT has notified the Income-tax (6th Amendment) Rules, 2016 further to amend the Income-tax Rules, 1962, which shall come into force from the 1st day of April, 2016. These amendment rules have inserted new Income Tax Rule 8AA relating to “Method of determination of period of holding of capital assets in certain cases”, as under:
(1) The period for which any capital asset, other than the capital assets mentioned in clause (i) of the Explanation 1 to clause (42A) of section 2 of the Act, is held by an assessee, shall be determined in accordance with the provisions of this rule.
(2) In the case of a capital asset, being a share or debenture of a company, which becomes the property of the assessee in the circumstances mentioned in clause (x) of section 47 of the Act, there shall be included the period for which the bond, debenture, debenture-stock or deposit certificate, as the case may be, was held by the assessee prior to the conversion.”