Income Tax Act, 2025
Section 13: Ins. by Act 41 of 1975, s. 12 (w.e.f. 11976).
13. Ins. by Act 41 of 1975, s. 12 (w.e.f. 11976).
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the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the
property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the
previous owner or the assessee, as the case may be.
1[Explanation.—In this 2[sub-section] the expression “previous owner of the property” in relation to
any capital asset owned by an assessee means the last previous owner of the capital asset who acquired it
by a mode of acquisition other than that referred to in clause (i) or 3[clause (ii) or clause (iii) or
clause (iv)] of this 2[sub-section].]
4[(2) Where the capital asset being a share or shares in an amalgamated company which is an Indian
company became the property of the assessee in consideration of a transfer referred to in clause (vii) of
section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the
share or shares in the amalgamating company.]
5[(2A) Where the capital asset, being a share or debenture of a company, became the property of the
assessee in consideration of a transfer referred to in clause (x) or clause (xa) of section 47, the cost of
acquisition of the asset to the assessee shall be deemed to be that part of the cost of debenture, debenturestock, bond or deposit certificate in relation to which such asset is acquired by the assessee.]
6[(2AA) Where the capital gain arises from the transfer of specified security or sweat equity shares
referred to in sub-clause (vi) of clause (2) of section 17, the cost of acquisition of such security or shares
shall be the fair market value which has been taken into account for the purposes of the said sub-clause.]
7[(2AAA) Where the capital asset, being rights of a partner referred to in section 42 of the Limited
Liability Partnership Act, 2008 (6 of 2009), became the property of the assessee on conversion as referred
to in clause (xiiib) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of
acquisition to him of the share or shares in the company immediately before its conversion.]
8[(2AB) Where the capital gain arises from the transfer of specified security or sweat equity shares,
the cost of acquisition of such security or shares shall be the fair market value which has been taken into
account while computing the value of fringe benefits under clause (ba) of sub-section (1) of
section 115WC.]
9[(2ABB) Where the capital asset, being share or shares of a company, is acquired by a non-resident
assessee on redemption of Global Depository Receipts referred to in clause (b) of sub-section (1) of
section 115AC held by such assessee, the cost of acquisition of the share or shares shall be the price of
such share or shares prevailing on any recognised stock exchange on the date on which a request for such
redemption was made.
Explanation.—For the purposes of this sub-section, “recognised stock exchange” shall have the
meaning assigned to it in clause (ii) of the Explanation 1 to sub-section (5) of section 43.]
10[(2AC) Where the capital asset, being a unit of a business trust, became the property of the assessee
in consideration of a transfer as referred to in clause (xvii) of section 47, the cost of acquisition of the
asset shall be deemed to be the cost of acquisition to him of the share referred to in the said clause.]
9[(2AD) Where the capital asset, being a unit or units in a consolidated scheme of a mutual fund,
became the property of the assessee in consideration of a transfer referred to in clause (xviii) 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 scheme of the mutual fund.]
or 3[clause
or clause
or
clause
Where the capital asset being a share or shares in an amalgamated company which is an Indian
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 the cost of acquisition to him of the
share or shares in the amalgamating company.]
5[
Where the capital asset, being a share or debenture of a company, became the property of the
assessee in consideration of a transfer referred to in clause
or clause
of section 47, the cost of
acquisition of the asset to the assessee shall be deemed to be that part of the cost of debenture, debenturestock, bond or deposit certificate in relation to which such asset is acquired by the assessee.]
6[
Where the capital gain arises from the transfer of specified security or sweat equity shares
referred to in sub-clause
of clause
of section 17, the cost of acquisition of such security or shares
shall be the fair market value which has been taken into account for the purposes of the said sub-clause.]
7[
Where the capital asset, being rights of a partner referred to in section 42 of the Limited
Liability Partnership Act, 2008 (6 of 2009), became the property of the assessee on conversion as 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 share or shares in the company immediately before its conversion.]
8[
Where the capital gain arises from the transfer of specified security or sweat equity shares,
the cost of acquisition of such security or shares shall be the fair market value which has been taken into
account while computing the value of fringe benefits under clause
of sub-section
of
section 115WC.]
9[
Where the capital asset, being share or shares of a company, is acquired by a non-resident
assessee on redemption of Global Depository Receipts referred to in clause
of sub-section
of
section 115AC held by such assessee, the cost of acquisition of the share or shares shall be the price of
such share or shares prevailing on any recognised stock exchange on the date on which a request for such
redemption was made.
Explanation.—For the purposes of this sub-section, “recognised stock exchange” shall have the
meaning assigned to it in clause
of the Explanation 1 to sub-section
of section 43.]
10[
Where the capital asset, being a unit of a business trust, became the property of the assessee
in consideration of a transfer as 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 share referred to in the said clause.]
9[
Where the capital asset, being a unit or units in a consolidated scheme of a mutual fund,
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 scheme of the mutual fund.]