security
This query is : Resolved
02 December 2016
can anyone tell me meaning of security as per income tax act 1961
02 December 2016
Security may be referred to investment in shares etc. If u r asking regarding IT account security then please elaborate.
02 December 2016
other than debenture, share. there is any other security which is cover under income tax act 1961???
23 July 2025
Under the Income Tax Act, 1961, the term "security" is not exhaustively defined in a single section. However, its meaning is generally aligned with the definition provided in the Securities Contracts (Regulation) Act, 1956 (SCRA), as referenced in various places in the Income Tax Act.
✅ Definition of "Securities" (as per SCRA, 1956 – Section 2(h))
"Securities" include:
Shares, scrips, stocks, bonds, debentures, debenture stock (whether issued by a company or a body corporate)
Government securities
Derivatives (like options, futures)
Units or any other instrument issued by collective investment schemes / mutual funds
Security receipts under Securitisation Act
Units of REITs (Real Estate Investment Trusts), InvITs, etc.
Any other instruments as notified
✅ Relevance under the Income Tax Act, 1961
In different contexts like:
Capital Gains (Section 2(14), 2(42A), etc.)
Income from Other Sources
Section 94 (Bonus Stripping, Dividend Stripping)
Section 10(38) (now withdrawn) – Exemption for long-term capital gains on sale of listed securities
Securities Transaction Tax (STT) – applicability when transacting in listed securities
…the word “securities” takes the meaning as per SCRA.
✅ Examples of "Securities" under Income Tax Act (broader meaning):
Equity shares
Preference shares
Debentures / Bonds
Government securities (e.g., T-bills)
Derivatives (Futures & Options)
Mutual fund units
REITs / InvITs
Securitised instruments
❌ Not treated as “Securities”:
Physical gold or gold ETF (not unless notified)
Real estate property
Bank fixed deposits
📌 Summary:
So yes, besides shares and debentures, many other instruments are treated as "securities" under the Income Tax Act by virtue of their inclusion in the SCRA definition — such as bonds, derivatives, government securities, mutual fund units, etc.
✅ Definition of "Securities" (as per SCRA, 1956 – Section 2(h))
"Securities" include:
Shares, scrips, stocks, bonds, debentures, debenture stock (whether issued by a company or a body corporate)
Government securities
Derivatives (like options, futures)
Units or any other instrument issued by collective investment schemes / mutual funds
Security receipts under Securitisation Act
Units of REITs (Real Estate Investment Trusts), InvITs, etc.
Any other instruments as notified
✅ Relevance under the Income Tax Act, 1961
In different contexts like:
Capital Gains (Section 2(14), 2(42A), etc.)
Income from Other Sources
Section 94 (Bonus Stripping, Dividend Stripping)
Section 10(38) (now withdrawn) – Exemption for long-term capital gains on sale of listed securities
Securities Transaction Tax (STT) – applicability when transacting in listed securities
…the word “securities” takes the meaning as per SCRA.
✅ Examples of "Securities" under Income Tax Act (broader meaning):
Equity shares
Preference shares
Debentures / Bonds
Government securities (e.g., T-bills)
Derivatives (Futures & Options)
Mutual fund units
REITs / InvITs
Securitised instruments
❌ Not treated as “Securities”:
Physical gold or gold ETF (not unless notified)
Real estate property
Bank fixed deposits
📌 Summary:
So yes, besides shares and debentures, many other instruments are treated as "securities" under the Income Tax Act by virtue of their inclusion in the SCRA definition — such as bonds, derivatives, government securities, mutual fund units, etc.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Banking Related Issue
- Traces submitting correction statement error
- ITR-Capital Gain
- ITR-3 File/Error Found
- Rent claimed on building given on permissive possession basis
- IT returns for fresh job holders
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
