2. Conditions for Tax Liability Condition-1 There should be a Capital Asset. Condition-2 The Capital Asset is Transferred by the assessee. Condition-3 Such Transfer takes place during the previous year. Condition-4 Any Profit or gain arises as a result of transfer Condition-5 Such Profit or gain is not exempt from tax.
5. Period Of Holding Situations How to Calculate Period of holding Capital Asset Acquired by way of gift, will, inheritance, etc. The period of holding of previous owner should be included Right Shares It should be counted from the date of allotment of right shares Allotment of shares of amalgamated Indian Company against shares of amalgamating company It should be counted from the date of acquisition of shares in the amalgamating company Purchase of shares and security through broker It should be counted from date of purchase by broker on behalf of investor Shares purchased in several lots at different point of time FIFO method should be adopted