Specified Security – Section 2(101)(c)(D)(C) | Income-tax Act, 2025 vs 1961

§ 2(101)(c)(D)(C) · Income-tax Act, 2025

Specified security

ITA 2025 · 2(101)(c)(D)(C) ≈ Expln. to S.115WB · 1961 Act
Definition — Section 2(101)(c)(D)(C)

Means securities as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956 — which includes shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of any incorporated company or body corporate; derivatives; units issued by collective investment schemes or mutual funds; security receipts; Government securities; other instruments declared by the Central Government; and rights or interest in securities — and where employees' stock option has been granted under any plan or scheme, includes the securities offered under such plan or scheme.

Act Comparison
Income-tax Act, 2025
2(101)(c)(D)(C)
Specified security
Income-tax Act, 1961
—
No direct equivalent
Newly defined in 2025
Key Points
  • Moved from Explanation to Section 115WB of the 1961 Act into Section 2 as a standalone sub-definition
  • Relevant for holding period computation of ESOPs after exercise
  • Perquisite taxable at exercise; capital gain taxable at sale
💡 Practical Note

ESOP holding period begins from the date of exercise (allotment of shares), not the grant date — a critical distinction for capital gains computation.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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