# The Finance Act, 2017, Section 3: Amendment of section 2

- Act: The Finance Act, 2017
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2017/section/3/

## Text

CHAPTER III DIRECT TAXES Income-tax Amendment of section 2. 3. In section 2 of the Income-tax Act,— (I) | in clause (24), after sub-clause (xvii), the following sub-clause shall be inserted, namely: — "(xviia) | any sum of money or value of property referred to in clause (x) of sub-section (2) of section 56;"; (II) | in clause (42A),— (a) | in the third proviso [as inserted by section 3 of the Finance Act, 2016 (28 of 2016)], after the words and brackets "a company (not being a share listed in a recognised stock exchange in India)", the words "or an immovable property, being land or building or both," shall be inserted with effect from the 1st day of April, 2018; (b) | in Explanation 1, in clause (i),— (A) | after sub-clause (he), the following sub-clause shall be inserted with effect from the 1st day of April, 2018, namely:— "(hf) | in the case of a capital asset, being equity shares in a company, which becomes the property of the assessee in consideration of a transfer referred to in clause (xb) of section 47, there shall be included the period for which the preference shares were held by the assessee;"; (B) | after sub-clause (hf) as so inserted, the following sub-clause shall be inserted, namely:— "(hg) | in the case of a capital asset, being a unit or units, which becomes the property of the assessee in consideration of a transfer referred to in clause (xix) of section 47, there shall be included the period for which the unit or units in the consolidating plan of a mutual fund scheme were held by the assessee;".

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