Income Tax Act, 2025
Section 10: Subs. by Act 32 of 2003, s. 31, for “corporatisation” (w.e.f. 12004).
10. Subs. by Act 32 of 2003, s. 31, for “corporatisation” (w.e.f. 12004).
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1[(ac) subject to the provisions of sub-clauses (i) and (ii) of clause (b), in relation to a long-term
capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a
business trust referred to in section 112A, acquired before the 1st day of February, 2018, shall be
higher of—
(i) the cost of acquisition of such asset; and
(ii) lower of—
(A) the fair market value of such asset; and
(B) the full value of consideration received or accruing as a result of the transfer of the
capital asset.
Explanation.—For the purposes of this clause,—
(a) “fair market value” means,—
(i) in a case where the capital asset is listed on any recognised stock exchange as on the
31st day of January, 2018, the highest price of the capital asset quoted on such exchange on
the said date:
Provided that where there is no trading in such asset on such exchange on the 31st day of
January, 2018, the highest price of such asset on such exchange on a date immediately
preceding the 31st day of January, 2018 when such asset was traded on such exchange shall
be the fair market value;
(ii) in a case where the capital asset is a unit which is not listed on a recognised stock
exchange as on the 31st day of January, 2018, the net asset value of such unit as on the said
date;
(iii) in a case where the capital asset is an equity share in a company which is—
(A) not listed on a recognised stock exchange as on the 31st day of January, 2018 but
listed on such exchange on the date of transfer;
(B) listed on a recognised stock exchange on the date of transfer and which became
the property of the assessee in consideration of share which is not listed on such
exchange as on the 31st day of January, 2018 by way of transaction not regarded as
transfer under section 47,
an amount which bears to the cost of acquisition the same proportion as Cost Inflation Index for
the financial year 2017-2018 bears to the Cost Inflation Index for the first year in which the asset
was held by the assessee or for the year beginning on the first day of April, 2001, whichever is
later;
(b) “Cost Inflation Index” shall have the meaning assigned to it in clause (v) of the
Explanation to section 48;
(c) “recognised stock exchange” shall have the meaning assigned to it in clause (ii) of
Explanation 1 to clause (5) of section 43.]
subject to the provisions of sub-clauses
and
of clause
the cost of acquisition of such asset; and
lower of—
the fair market value of such asset; and
the full value of consideration received or accruing as a result of the transfer of the
capital asset.
Explanation.—For the purposes of this clause,—
“fair market value” means,—
in a case where the capital asset is listed on any recognised stock exchange as on the
31st day of January, 2018, the highest price of the capital asset quoted on such exchange on
the said date:
Provided that where there is no trading in such asset on such exchange on the 31st day of
January, 2018, the highest price of such asset on such exchange on a date immediately
preceding the 31st day of January, 2018 when such asset was traded on such exchange shall
be the fair market value;
in a case where the capital asset is a unit which is not listed on a recognised stock
exchange as on the 31st day of January, 2018, the net asset value of such unit as on the said
date;
in a case where the capital asset is an equity share in a company which is—
not listed on a recognised stock exchange as on the 31st day of January, 2018 but
listed on such exchange on the date of transfer;
listed on a recognised stock exchange on the date of transfer and which became
the property of the assessee in consideration of share which is not listed on such
exchange as on the 31st day of January, 2018 by way of transaction not regarded as
transfer under section 47,
an amount which bears to the cost of acquisition the same proportion as Cost Inflation Index for
the financial year 2017-2018 bears to the Cost Inflation Index for the first year in which the asset
was held by the assessee or for the year beginning on the first day of April, 2001, whichever is
later;
“Cost Inflation Index” shall have the meaning assigned to it in clause
of the
Explanation to section 48;
“recognised stock exchange” shall have the meaning assigned to it in clause
of
Explanation 1 to clause
of section 43.]