Meaning of adjusted, cost of improvement and cost of acquisition
For the purposes of sections 48 and 49,- a Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 . b cost of any improvement,- 1 in relation to a capital asset being goodwill of a business shall be taken to be nil and 4 2 in relation to any other capital asset,- i where the capital asset became the property of the previous owner or the assessee before the 1st day of April, 1981 , means all expenditure of a capital nature incurred in making any additions or alterations to the capital asset on or after the said date by the previous owner or the assessee, and ii in any other case, means all expenditure of a capital nature incurred in making any additions or alterations to the capital asset by the assessee after it became his property, and, where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, by the previous owner, but does not include any expenditure which is deductible in computing the income chargeable under the head Interest on 1. Substituted for sections 48, 49 and 50 by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. 2. Prior to the omission, clause a , as amended by the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 1971, read as under a adjusted, in relation to written down value or fair market value, means diminished by any loss deducted or increased by any profit assessed, under the provisions of clause iii of sub- section 1 or clause ii of sub- section 1A of section 32 or sub- section 2 or sub- section 2A of section 41, as the case may be, the computation for this purpose being made with reference to the period commencing from 1st day of April, 1974 in cases to which clause 2 of section 50 applies Earlier, the italicised words were substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which were substituted for 1st day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978 . 3. Substituted for cost of any improvement, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 5. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for 1st day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 6. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 7. The words and the fair market value of the asset on that day is taken as the cost of acquisition at the option of the assessee, omitted by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. securities, Income from house property, Profits and gains of business or profession, or Income from other sources, and the expression Improvement shall be construed accordingly. 2 For the purposes of sections 48 and 49, cost of acquisition,- a in relation to a capital asset, being goodwill of a business, tenancy rights, stage carriage permits or loom hours,- i in the case of acquisition of such asset by the assessee by, purchase from a previous owner, means the amount of the purchase price and ii in any other case not being a case falling under sub- clauses i to iv of sub- section 1 of section 49, shall be taken to be nil aa in a case where by virtue of holding a capital asset, being a share or any other security within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 5 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee becomes entitled to subscribe to any additional financial asset, then, subject to the provisions of sub- clauses i and ii of clause b ,- i in relation to the original financial asset, on the basis of which the assessee becomes entitled to any additional financial asset, means the amount actually paid for acquiring the original financial asset and ii in relation to any right to renounce the said entitlement to subscribe to the financial asset, when such right is renounced by the assessee in favour of any person, shall be taken to be nil ill the case of such assessee iii in relation to the financial asset, to which the assessee has subscribed on the basis of the said entitlement, means the amount actually paid by him for acquiring such asset iiia in relation to the financial asset allotted to the assessee without 1. Omitted as a separate head of income by the Finance Act, 1988, w. e. f. 1- 4- 1989. The reference here should also have been omitted. 2. Substituted for For the purposes of sections 48 and 49, cost of acquisition, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted by the Finance Act, 1994, w. e. f. 1- 4- 1995 for the following a in relation to a capital asset, being goodwill of a business,- i in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price and ii in any other case, shall be taken to be nil 4. Being substituted by the following by the Finance Act, 1995, w. e. f. 1- 4- 1996 in a case where, by virtue of holding a capital asset, being a share or any other security, within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee- A becomes entitled to subscribe to any additional financial asset or B is allotted any additional financial asset without any payment, then, subject to the provisions of sub- clauses i and ii of clause b 6. Being inserted by the Finance Act, 1995, w. e. f. 1- 4- 1996. any payment and on the basis of holding of any other financial asset, shall be taken to be nil in the case of such assessee iv in relation to any financial asset purchased by any person in whose favour the right to subscribe to such asset has been renounced, means the aggregate of the amount of the purchase price paid by him to the person renouncing such right and the amount paid by him to the company or institution, as the case may be, for acquiring such financial asset b in relation to any other capital asset,- i where the capital asset became the property of the assessee before the 1st day of April, 1981 , means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee ii where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, and the capital asset became the property of the previous owner before the 1st day of April, 1981 , means the cost of the capital asset to the previous owner or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee iii where the capital asset became the property of the assessee on the distribution of the capital assets of a company on its liquidation and the assessee has been assessed to income- tax under the head Capital gains in respect of that asset under section 46, means the fair market value of the asset on the date of distribution iv v where the capital asset, being a share or a stock of a company, became the property of the assessee on- a the consolidation and division of all or any of the 1. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 2. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 3. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 4. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 5. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 6. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 7. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 9. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 10. Omitted by the Finance Act, 1966, w. e. f. 1- 4- 1966. Earlier, clause iv was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 11. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. share capital of the company into shares of larger amount than its existing shares, b the conversion of any shares of the company into stock, c the re- conversion of any stock of the company into shares, d the sub- division of any of the shares of the company into shares of smaller amount, or e the conversion of one kind of shares of the company into another kind, means the cost of acquisition of the asset calculated with reference to the cost of acquisition of the shares or stock from which such asset is derived. 3 Where the cost for which the previous owner acquired the property cannot be ascertained, the cost of acquisition to the previous owner means the fair market value on the date on which the capital asset became the property of the previous owner.
Omitted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1988 .
b cost of any improvement,- 1 in relation to a capital asset being goodwill of a business shall be taken to be nil and 4 2 in relation to any other capital asset,- i where the capital asset became the property of the previous owner or the assessee before the 1st day of April, 1981 , means all expenditure of a capital nature incurred in making any additions or alterations to the capital asset on or after the said date by the previous owner or the assessee, and ii in any other case, means all expenditure of a capital nature incurred in making any additions or alterations to the capital asset by the assessee after it became his property, and, where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, by the previous owner, but does not include any expenditure which is deductible in computing the income chargeable under the head Interest on 1. Substituted for sections 48, 49 and 50 by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. 2. Prior to the omission, clause a , as amended by the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 1971, read as under a adjusted, in relation to written down value or fair market value, means diminished by any loss deducted or increased by any profit assessed, under the provisions of clause iii of sub- section 1 or clause ii of sub- section 1A of section 32 or sub- section 2 or sub- section 2A of section 41, as the case may be, the computation for this purpose being made with reference to the period commencing from 1st day of April, 1974 in cases to which clause 2 of section 50 applies Earlier, the italicised words were substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which were substituted for 1st day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978 . 3. Substituted for cost of any improvement, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 5. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for 1st day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 6. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 7. The words and the fair market value of the asset on that day is taken as the cost of acquisition at the option of the assessee, omitted by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. securities, Income from house property, Profits and gains of business or profession, or Income from other sources, and the expression Improvement shall be construed accordingly. 2 For the purposes of sections 48 and 49, cost of acquisition,- a in relation to a capital asset, being goodwill of a business, tenancy rights, stage carriage permits or loom hours,- i in the case of acquisition of such asset by the assessee by, purchase from a previous owner, means the amount of the purchase price and ii in any other case not being a case falling under sub- clauses i to iv of sub- section 1 of section 49, shall be taken to be nil aa in a case where by virtue of holding a capital asset, being a share or any other security within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 5 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee becomes entitled to subscribe to any additional financial asset, then, subject to the provisions of sub- clauses i and ii of clause b ,- i in relation to the original financial asset, on the basis of which the assessee becomes entitled to any additional financial asset, means the amount actually paid for acquiring the original financial asset and ii in relation to any right to renounce the said entitlement to subscribe to the financial asset, when such right is renounced by the assessee in favour of any person, shall be taken to be nil ill the case of such assessee iii in relation to the financial asset, to which the assessee has subscribed on the basis of the said entitlement, means the amount actually paid by him for acquiring such asset iiia in relation to the financial asset allotted to the assessee without 1. Omitted as a separate head of income by the Finance Act, 1988, w. e. f. 1- 4- 1989. The reference here should also have been omitted. 2. Substituted for For the purposes of sections 48 and 49, cost of acquisition, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted by the Finance Act, 1994, w. e. f. 1- 4- 1995 for the following a in relation to a capital asset, being goodwill of a business,- i in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price and ii in any other case, shall be taken to be nil 4. Being substituted by the following by the Finance Act, 1995, w. e. f. 1- 4- 1996 in a case where, by virtue of holding a capital asset, being a share or any other security, within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee- A becomes entitled to subscribe to any additional financial asset or B is allotted any additional financial asset without any payment, then, subject to the provisions of sub- clauses i and ii of clause b 6. Being inserted by the Finance Act, 1995, w. e. f. 1- 4- 1996. any payment and on the basis of holding of any other financial asset, shall be taken to be nil in the case of such assessee iv in relation to any financial asset purchased by any person in whose favour the right to subscribe to such asset has been renounced, means the aggregate of the amount of the purchase price paid by him to the person renouncing such right and the amount paid by him to the company or institution, as the case may be, for acquiring such financial asset b in relation to any other capital asset,- i where the capital asset became the property of the assessee before the 1st day of April, 1981 , means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee ii where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, and the capital asset became the property of the previous owner before the 1st day of April, 1981 , means the cost of the capital asset to the previous owner or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee iii where the capital asset became the property of the assessee on the distribution of the capital assets of a company on its liquidation and the assessee has been assessed to income- tax under the head Capital gains in respect of that asset under section 46, means the fair market value of the asset on the date of distribution iv v where the capital asset, being a share or a stock of a company, became the property of the assessee on- a the consolidation and division of all or any of the 1. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 2. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 3. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 4. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 5. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 6. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 7. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 9. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 10. Omitted by the Finance Act, 1966, w. e. f. 1- 4- 1966. Earlier, clause iv was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 11. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. share capital of the company into shares of larger amount than its existing shares, b the conversion of any shares of the company into stock, c the re- conversion of any stock of the company into shares, d the sub- division of any of the shares of the company into shares of smaller amount, or e the conversion of one kind of shares of the company into another kind, means the cost of acquisition of the asset calculated with reference to the cost of acquisition of the shares or stock from which such asset is derived. 3 Where the cost for which the previous owner acquired the property cannot be ascertained, the cost of acquisition to the previous owner means the fair market value on the date on which the capital asset became the property of the previous owner.
1 in relation to a capital asset being goodwill of a business shall be taken to be nil and 4 2 in relation to any other capital asset,- i where the capital asset became the property of the previous owner or the assessee before the 1st day of April, 1981 , means all expenditure of a capital nature incurred in making any additions or alterations to the capital asset on or after the said date by the previous owner or the assessee, and ii in any other case, means all expenditure of a capital nature incurred in making any additions or alterations to the capital asset by the assessee after it became his property, and, where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, by the previous owner, but does not include any expenditure which is deductible in computing the income chargeable under the head Interest on 1. Substituted for sections 48, 49 and 50 by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. 2. Prior to the omission, clause a , as amended by the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 1971, read as under a adjusted, in relation to written down value or fair market value, means diminished by any loss deducted or increased by any profit assessed, under the provisions of clause iii of sub- section 1 or clause ii of sub- section 1A of section 32 or sub- section 2 or sub- section 2A of section 41, as the case may be, the computation for this purpose being made with reference to the period commencing from 1st day of April, 1974 in cases to which clause 2 of section 50 applies Earlier, the italicised words were substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which were substituted for 1st day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978 . 3. Substituted for cost of any improvement, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 5. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for 1st day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 6. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 7. The words and the fair market value of the asset on that day is taken as the cost of acquisition at the option of the assessee, omitted by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. securities, Income from house property, Profits and gains of business or profession, or Income from other sources, and the expression Improvement shall be construed accordingly.
where the capital asset became the property of the previous owner or the assessee before the 1st day of April, 1981 , means all expenditure of a capital nature incurred in making any additions or alterations to the capital asset on or after the said date by the previous owner or the assessee, and
in any other case, means all expenditure of a capital nature incurred in making any additions or alterations to the capital asset by the assessee after it became his property, and, where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, by the previous owner, but does not include any expenditure which is deductible in computing the income chargeable under the head Interest on 1. Substituted for sections 48, 49 and 50 by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. 2. Prior to the omission, clause a , as amended by the Taxation Laws Amendment Act, 1970, w. e. f. 1- 4- 1971, read as under a adjusted, in relation to written down value or fair market value, means diminished by any loss deducted or increased by any profit assessed, under the provisions of clause iii of sub- section 1 or clause ii of sub- section 1A of section 32 or sub- section 2 or sub- section 2A of section 41, as the case may be, the computation for this purpose being made with reference to the period commencing from 1st day of April, 1974 in cases to which clause 2 of section 50 applies Earlier, the italicised words were substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which were substituted for 1st day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978 . 3. Substituted for cost of any improvement, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 5. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for 1st day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 6. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 7. The words and the fair market value of the asset on that day is taken as the cost of acquisition at the option of the assessee, omitted by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. securities, Income from house property, Profits and gains of business or profession, or Income from other sources, and the expression Improvement shall be construed accordingly.
Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964.
For the purposes of sections 48 and 49, cost of acquisition,- a in relation to a capital asset, being goodwill of a business, tenancy rights, stage carriage permits or loom hours,- i in the case of acquisition of such asset by the assessee by, purchase from a previous owner, means the amount of the purchase price and ii in any other case not being a case falling under sub- clauses i to iv of sub- section 1 of section 49, shall be taken to be nil aa in a case where by virtue of holding a capital asset, being a share or any other security within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 5 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee becomes entitled to subscribe to any additional financial asset, then, subject to the provisions of sub- clauses i and ii of clause b ,- i in relation to the original financial asset, on the basis of which the assessee becomes entitled to any additional financial asset, means the amount actually paid for acquiring the original financial asset and ii in relation to any right to renounce the said entitlement to subscribe to the financial asset, when such right is renounced by the assessee in favour of any person, shall be taken to be nil ill the case of such assessee iii in relation to the financial asset, to which the assessee has subscribed on the basis of the said entitlement, means the amount actually paid by him for acquiring such asset iiia in relation to the financial asset allotted to the assessee without 1. Omitted as a separate head of income by the Finance Act, 1988, w. e. f. 1- 4- 1989. The reference here should also have been omitted. 2. Substituted for For the purposes of sections 48 and 49, cost of acquisition, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted by the Finance Act, 1994, w. e. f. 1- 4- 1995 for the following a in relation to a capital asset, being goodwill of a business,- i in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price and ii in any other case, shall be taken to be nil 4. Being substituted by the following by the Finance Act, 1995, w. e. f. 1- 4- 1996 in a case where, by virtue of holding a capital asset, being a share or any other security, within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee- A becomes entitled to subscribe to any additional financial asset or B is allotted any additional financial asset without any payment, then, subject to the provisions of sub- clauses i and ii of clause b 6. Being inserted by the Finance Act, 1995, w. e. f. 1- 4- 1996. any payment and on the basis of holding of any other financial asset, shall be taken to be nil in the case of such assessee iv in relation to any financial asset purchased by any person in whose favour the right to subscribe to such asset has been renounced, means the aggregate of the amount of the purchase price paid by him to the person renouncing such right and the amount paid by him to the company or institution, as the case may be, for acquiring such financial asset b in relation to any other capital asset,- i where the capital asset became the property of the assessee before the 1st day of April, 1981 , means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee ii where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, and the capital asset became the property of the previous owner before the 1st day of April, 1981 , means the cost of the capital asset to the previous owner or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee iii where the capital asset became the property of the assessee on the distribution of the capital assets of a company on its liquidation and the assessee has been assessed to income- tax under the head Capital gains in respect of that asset under section 46, means the fair market value of the asset on the date of distribution iv v where the capital asset, being a share or a stock of a company, became the property of the assessee on- a the consolidation and division of all or any of the 1. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 2. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 3. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 4. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 5. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 6. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 7. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 9. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 10. Omitted by the Finance Act, 1966, w. e. f. 1- 4- 1966. Earlier, clause iv was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 11. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. share capital of the company into shares of larger amount than its existing shares, b the conversion of any shares of the company into stock, c the re- conversion of any stock of the company into shares, d the sub- division of any of the shares of the company into shares of smaller amount, or e the conversion of one kind of shares of the company into another kind, means the cost of acquisition of the asset calculated with reference to the cost of acquisition of the shares or stock from which such asset is derived.
a in relation to a capital asset, being goodwill of a business, tenancy rights, stage carriage permits or loom hours,- i in the case of acquisition of such asset by the assessee by, purchase from a previous owner, means the amount of the purchase price and ii in any other case not being a case falling under sub- clauses i to iv of sub- section 1 of section 49, shall be taken to be nil
in the case of acquisition of such asset by the assessee by, purchase from a previous owner, means the amount of the purchase price and
in any other case not being a case falling under sub- clauses i to iv of sub- section 1 of section 49, shall be taken to be nil
aa in a case where by virtue of holding a capital asset, being a share or any other security within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 5 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee becomes entitled to subscribe to any additional financial asset, then, subject to the provisions of sub- clauses i and ii of clause b ,- i in relation to the original financial asset, on the basis of which the assessee becomes entitled to any additional financial asset, means the amount actually paid for acquiring the original financial asset and ii in relation to any right to renounce the said entitlement to subscribe to the financial asset, when such right is renounced by the assessee in favour of any person, shall be taken to be nil ill the case of such assessee iii in relation to the financial asset, to which the assessee has subscribed on the basis of the said entitlement, means the amount actually paid by him for acquiring such asset iiia in relation to the financial asset allotted to the assessee without 1. Omitted as a separate head of income by the Finance Act, 1988, w. e. f. 1- 4- 1989. The reference here should also have been omitted. 2. Substituted for For the purposes of sections 48 and 49, cost of acquisition, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted by the Finance Act, 1994, w. e. f. 1- 4- 1995 for the following a in relation to a capital asset, being goodwill of a business,- i in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price and ii in any other case, shall be taken to be nil 4. Being substituted by the following by the Finance Act, 1995, w. e. f. 1- 4- 1996 in a case where, by virtue of holding a capital asset, being a share or any other security, within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee- A becomes entitled to subscribe to any additional financial asset or B is allotted any additional financial asset without any payment, then, subject to the provisions of sub- clauses i and ii of clause b 6. Being inserted by the Finance Act, 1995, w. e. f. 1- 4- 1996. any payment and on the basis of holding of any other financial asset, shall be taken to be nil in the case of such assessee iv in relation to any financial asset purchased by any person in whose favour the right to subscribe to such asset has been renounced, means the aggregate of the amount of the purchase price paid by him to the person renouncing such right and the amount paid by him to the company or institution, as the case may be, for acquiring such financial asset
in relation to the original financial asset, on the basis of which the assessee becomes entitled to any additional financial asset, means the amount actually paid for acquiring the original financial asset and
in relation to any right to renounce the said entitlement to subscribe to the financial asset, when such right is renounced by the assessee in favour of any person, shall be taken to be nil ill the case of such assessee
in relation to the financial asset, to which the assessee has subscribed on the basis of the said entitlement, means the amount actually paid by him for acquiring such asset
iiia in relation to the financial asset allotted to the assessee without 1. Omitted as a separate head of income by the Finance Act, 1988, w. e. f. 1- 4- 1989. The reference here should also have been omitted. 2. Substituted for For the purposes of sections 48 and 49, cost of acquisition, in relation to a capital asset,- by the Finance Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted by the Finance Act, 1994, w. e. f. 1- 4- 1995 for the following a in relation to a capital asset, being goodwill of a business,- i in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price and ii in any other case, shall be taken to be nil 4. Being substituted by the following by the Finance Act, 1995, w. e. f. 1- 4- 1996 in a case where, by virtue of holding a capital asset, being a share or any other security, within the meaning of clause h of section 2 of the Securities Contracts Regulation Act, 1956 42 of 1956 hereafter in this clause referred to as the financial asset , the assessee- A becomes entitled to subscribe to any additional financial asset or B is allotted any additional financial asset without any payment, then, subject to the provisions of sub- clauses i and ii of clause b 6. Being inserted by the Finance Act, 1995, w. e. f. 1- 4- 1996. any payment and on the basis of holding of any other financial asset, shall be taken to be nil in the case of such assessee
in relation to any financial asset purchased by any person in whose favour the right to subscribe to such asset has been renounced, means the aggregate of the amount of the purchase price paid by him to the person renouncing such right and the amount paid by him to the company or institution, as the case may be, for acquiring such financial asset
b in relation to any other capital asset,- i where the capital asset became the property of the assessee before the 1st day of April, 1981 , means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee ii where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, and the capital asset became the property of the previous owner before the 1st day of April, 1981 , means the cost of the capital asset to the previous owner or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee iii where the capital asset became the property of the assessee on the distribution of the capital assets of a company on its liquidation and the assessee has been assessed to income- tax under the head Capital gains in respect of that asset under section 46, means the fair market value of the asset on the date of distribution iv v where the capital asset, being a share or a stock of a company, became the property of the assessee on- a the consolidation and division of all or any of the 1. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 2. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 3. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 4. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 5. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 6. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 7. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 9. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 10. Omitted by the Finance Act, 1966, w. e. f. 1- 4- 1966. Earlier, clause iv was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 11. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. share capital of the company into shares of larger amount than its existing shares, b the conversion of any shares of the company into stock, c the re- conversion of any stock of the company into shares, d the sub- division of any of the shares of the company into shares of smaller amount, or e the conversion of one kind of shares of the company into another kind, means the cost of acquisition of the asset calculated with reference to the cost of acquisition of the shares or stock from which such asset is derived.
where the capital asset became the property of the assessee before the 1st day of April, 1981 , means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee
where the capital asset became the property of the assessee by any of the modes specified in sub- section 1 of section 49, and the capital asset became the property of the previous owner before the 1st day of April, 1981 , means the cost of the capital asset to the previous owner or the fair market value of the asset on the 1st day of April, 1981 , at the option of the assessee
where the capital asset became the property of the assessee on the distribution of the capital assets of a company on its liquidation and the assessee has been assessed to income- tax under the head Capital gains in respect of that asset under section 46, means the fair market value of the asset on the date of distribution
iv
where the capital asset, being a share or a stock of a company, became the property of the assessee on- a the consolidation and division of all or any of the 1. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 2. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 3. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 4. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 5. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 6. Substituted for 1st day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 7. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 8. Substituted for list day of January, 1964 by the Finance Act, 1986, w. e. f. 1- 4- 1987 which was earlier substituted for list day of January, 1954 by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 9. Substituted for 1974 by the Finance Act, 1992, w. e. f. 1- 4- 1993. 10. Omitted by the Finance Act, 1966, w. e. f. 1- 4- 1966. Earlier, clause iv was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 11. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. share capital of the company into shares of larger amount than its existing shares, b the conversion of any shares of the company into stock, c the re- conversion of any stock of the company into shares, d the sub- division of any of the shares of the company into shares of smaller amount, or e the conversion of one kind of shares of the company into another kind, means the cost of acquisition of the asset calculated with reference to the cost of acquisition of the shares or stock from which such asset is derived.
Where the cost for which the previous owner acquired the property cannot be ascertained, the cost of acquisition to the previous owner means the fair market value on the date on which the capital asset became the property of the previous owner.