Amendment of section 2

Section 3 of the Finance Act, 2017 deals with amendment of section 2. CHAPTER III DIRECT TAXES Income-tax Amendment of section 2. The Act was enacted on 17 Apr 2017.

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;".

Section 3, The Finance Act, 2017.