Income Tax Act, 2025
Section 10: Ins. by Act 25 of 2014, s. 20 (w.e.f. 12015).
10. Ins. by Act 25 of 2014, s. 20 (w.e.f. 12015).
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1[(2AE) Where the capital asset, being equity share of a company, became the property of the assessee in
consideration of a transfer referred to in clause (xb) of section 47, the cost of acquisition of the asset shall be
deemed to be that part of the cost of the preference share in relation to which such asset is acquired by the
assessee.]
2[(2AF) Where the capital asset, being a unit or units in a consolidated plan of a mutual fund scheme,
became the property of the assessee in consideration of a transfer referred to in clause (xix) of section 47,
the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the unit or units in
the consolidating plan of the scheme of the mutual fund.]
3* * * * *
4[(2C) The cost of acquisition of the shares in the resulting company shall be the amount which bears
to the cost of acquisition of shares held by the assessee in the demerged company the same proportion as
the net book value of the assets transferred in a demerger bears to the net worth of the demerged company
immediately before such demerger.
(2D) The cost of acquisition of the original shares held by the shareholder in the demerged company
shall be deemed to have been reduced by the amount as so arrived at under sub-section (2C).]
5[(2E) The provisions of sub-section (2), sub-section (2C) and sub-section (2D) shall, as far as may
be, also apply in relation to business reorganisation of a co-operative bank as referred to in
section 44DB.]
Explanation.—For the purposes of this section, “net worth” shall mean the aggregate of the paid up
share capital and general reserves as appearing in the books of account of the demerged company
immediately before the demerger.]
6[(3) Notwithstanding anything contained in sub-section (1), where the capital gain arising from the
transfer of a capital asset referred to in clause (iv) or, as the case may be, clause (v) of section 47 is
deemed to be income chargeable under the head “Capital gains” by virtue of the provisions contained in
section 47A, the cost of acquisition of such asset to the transferee-company shall be the cost for which
such asset was acquired by it.]
7[(4) Where the capital gain arises from the transfer of a property, the value of which has been subject
to income-tax under clause (vii) 8[or clause (viia)] 2[or clause (x)] of sub-section (2) of section 56, the cost
of acquisition of such property shall be deemed to be the value which has been taken into account for the
purposes of the said clause (vii) 8[or clause (viia)] 2[or clause (x)].]
9[(5) Where the capital gain arises from the transfer of an asset declared under the Income Declaration
Scheme, 2016, and the tax, surcharge and penalty have been paid in accordance with the provisions of the
Scheme on the fair market value of the asset as on the date of commencement of the Scheme, the cost of
acquisition of the asset shall be deemed to be the fair market value of the asset which has been taken into
account for the purposes of the said Scheme.]
Where the capital asset, being equity share of a company, became the property of the assessee in
consideration of a transfer referred to in clause
of section 47, the cost of acquisition of the asset shall be
deemed to be that part of the cost of the preference share in relation to which such asset is acquired by the
assessee.]
2[
Where the capital asset, being a unit or units in a consolidated plan of a mutual fund scheme,
became the property of the assessee in consideration of a transfer referred to in clause
of section 47,
the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the unit or units in
the consolidating plan of the scheme of the mutual fund.]
3* * * * *
4[
The cost of acquisition of the shares in the resulting company shall be the amount which bears
to the cost of acquisition of shares held by the assessee in the demerged company the same proportion as
the net book value of the assets transferred in a demerger bears to the net worth of the demerged company
immediately before such demerger.
The cost of acquisition of the original shares held by the shareholder in the demerged company
shall be deemed to have been reduced by the amount as so arrived at under sub-section
The provisions of sub-section
and sub-section
shall, as far as may
be, also apply in relation to business reorganisation of a co-operative bank as referred to in
section 44DB.]
Explanation.—For the purposes of this section, “net worth” shall mean the aggregate of the paid up
share capital and general reserves as appearing in the books of account of the demerged company
immediately before the demerger.]
6[
Notwithstanding anything contained in sub-section
or, as the case may be, clause
of section 47 is
deemed to be income chargeable under the head “Capital gains” by virtue of the provisions contained in
section 47A, the cost of acquisition of such asset to the transferee-company shall be the cost for which
such asset was acquired by it.]
7[
Where the capital gain arises from the transfer of a property, the value of which has been subject
to income-tax under clause
8[or clause
of section 56, the cost
of acquisition of such property shall be deemed to be the value which has been taken into account for the
purposes of the said clause
8[or clause
Where the capital gain arises from the transfer of an asset declared under the Income Declaration
Scheme, 2016, and the tax, surcharge and penalty have been paid in accordance with the provisions of the
Scheme on the fair market value of the asset as on the date of commencement of the Scheme, the cost of
acquisition of the asset shall be deemed to be the fair market value of the asset which has been taken into
account for the purposes of the said Scheme.]