Budget 2012 : Highlights - Capital Gains Tax

Definition of 'Capital Asset': Sec. 2(14)

'Capital asset' at present has been defined by the said section as property of any kind held by an assessee. A proviso is to be inserted retrospectively from 1st April, 1962, which clarifies that a property‟ "includes any rights in or in relation to an Indian Company, including rights of management or control or any other rights whatsoever".

This proposed retrospective amendment has been made as a reaction to the Vodafone case as the current definition does not include property indirectly held. Furthermore, it would have to be understood what is meant by rights of management or control and whether is it a reference to voting rights agreement, right to appoint director etc.