Section 3 - Amendment of section 2 - Finance Act, 2003

CHAPTER III. DIRECT TAXES 3. Amendment of section 2.- In section 2 of the Income-tax Act,- (a) in clause (24) , in sub-clause (xii) , for the word, brackets and figures "clause (vii) ", the word, brackets, figure and letter "clause (va) " shall be substituted; (b) in clause (42A) , in Explanation 1, in clause (i) , after sub-clause (g) , the following sub-clauses shall be inserted with effect from the 1st day of April, 2004, namely:- "(h) in the case of a capital asset, being trading or clearing rights of a recognised stock exchange in India acquired by a person pursuant to demutualisation or corporatisation of the recognised stock exchange in India as referred to in clause (xiii) of section 47, there shall be included the period for which the person was a member of the recognised stock exchange in India immediately prior to such demutualisation or corporatisation; (ha) in the case of a capital asset, being equity share or shares in a company allotted pursuant to demutualisation or corporatisation of a recognised stock exchange in India as referred to in clause (xiii) of section 47, there shall be included the period for which the person was a member of the recognised stock exchange in India immediately prior to such demutualisation or corporatisation;".