Section 50AA — the law in short
What the courts have decided on section 50AA, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Statutory position — section 2(42A): only two holding periods from 23 July 2024
CBDT Circulars & InstructionsCuts both ways
Is a listed bond still a long-term asset only after three years, and what about units of a listed business trust? My client transferred both in late 2024.
From 23 July 2024 there are only two holding periods: twelve months for all listed securities and twenty-four months for everything else. The thirty-six month period is gone, so units of a listed business trust move from thirty-six months to twelve, and bonds, debentures and gold move from thirty-six months to twenty-four; unlisted shares and immovable property stay at twenty-four.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
