The provision of S. 50 changes the characteristic of the gain in some cases from long-term to short-term capital gain where assets are held beyond the specific term. However, the section does not change the characteristic of the capital asset held by the assessee, i.e., the long-term capital asset will remain a long-term capital asset for all other purposes, but for the deeming fiction under s. 50, capital gains is taxable as if it is gain arising from transfer of a short-term capital asset and it does not extend beyond this fiction to convert long-term capital asset into short-term capital asset for other purposes of the Act. Though the gain on transfer of a depreciable asset has been deemed to be in the nature of a short-term capital gain in case of transfer, that does not alter the characteristic of that capital asset, whether ‘long-term capital asset’ or ‘short-term capital asset’ for the purpose of other provisions of the Act. In order to apply s. 50 the mode of computation on the transfer of the asset, only ss. 48 and 49 has been modified to deem it as transfer of a short-term capital asset. (AY. 2000-01)