Income Tax Act, 2025
Section 6: Ins. by Act 23 of 2004, s. 12 (w.e.f. 12005).
6. Ins. by Act 23 of 2004, s. 12 (w.e.f. 12005).
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Explanation.—For the purposes of this section,—
(i) “foreign currency” and “Indian currency” shall have the meanings respectively assigned to
them in section 2 of 1[the Foreign Exchange Management Act, 1999 (42 of 1999);]
(ii) the conversion of Indian currency into foreign currency and the reconversion of foreign
currency into Indian currency shall be at the rate of exchange prescribed in this behalf;
(iii) “indexed cost of acquisition” means an amount which bears to the cost of acquisition the
same proportion as Cost Inflation Index for the year in which the asset is transferred 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 2[1st day of April, 2001,] whichever is later;
(iv) “indexed cost of any improvement” means an amount which bears to the cost of improvement
the same proportion as Cost Inflation Index for the year in which the asset is transferred bears to the
Cost Inflation Index for the year in which the improvement to the asset took place;
3[(v) “Cost Inflation Index”, in relation to a previous year, means such Index as the Central
Government may, having regard to seventy-five per cent of average rise in the 4[Consumer Price
Index (urban)] for the immediately preceding previous year to such previous year, by notification in
the Official Gazette, specify, in this behalf.]]
49. Cost with reference to certain modes of acquisition.—5[(1)] Where the capital asset became the
property of the assessee—
(i) on any distribution of assets on the total or partial partition of a Hindu undivided family;
(ii) under a gift or will;
(iii) (a) by succession, inheritance or devolution, or
6[(b) on any distribution of assets on the dissolution of a firm, body of individuals, or other
association of persons, where such dissolution had taken place at any time before the 1st day of
April, 1987, or]
(c) on any distribution of assets on the liquidation of a company, or
(d) under a transfer to a revocable or an irrevocable trust, or
(e) under any such transfer as is referred to in clause (iv) 7[or clause (v)] 8[or clause (vi)] 9[or
clause (via)] 10[or clause (viaa) or clause (viab) or clause (vib) 11[or clause (vic)] or clause (vica) or
clause (vicb) or clause (vicc)] 12[or clause (xiii) or clause (xiiib) or clause (xiv) of section 47];
13[(iv) such assessee being a Hindu undivided family, by the mode referred to in sub-section (2)
of section 64 at any time after the 31st day of December, 1969,]
1. Subs. by Act 17 of 2013, s. 4, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973)” (w.e.f. 12013).
“foreign currency” and “Indian currency” shall have the meanings respectively assigned to
them in section 2 of 1[the Foreign Exchange Management Act, 1999 (42 of 1999);]
the conversion of Indian currency into foreign currency and the reconversion of foreign
currency into Indian currency shall be at the rate of exchange prescribed in this behalf;
“indexed cost of acquisition” means an amount which bears to the cost of acquisition the
same proportion as Cost Inflation Index for the year in which the asset is transferred 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 2[1st day of April, 2001,] whichever is later;
“indexed cost of any improvement” means an amount which bears to the cost of improvement
the same proportion as Cost Inflation Index for the year in which the asset is transferred bears to the
Cost Inflation Index for the year in which the improvement to the asset took place;
3[
“Cost Inflation Index”, in relation to a previous year, means such Index as the Central
Government may, having regard to seventy-five per cent of average rise in the 4[Consumer Price
Index
on any distribution of assets on the total or partial partition of a Hindu undivided family;
under a gift or will;
(a) by succession, inheritance or devolution, or
6[
on any distribution of assets on the dissolution of a firm, body of individuals, or other
association of persons, where such dissolution had taken place at any time before the 1st day of
April, 1987, or]
on any distribution of assets on the liquidation of a company, or
under a transfer to a revocable or an irrevocable trust, or
under any such transfer as is referred to in clause
7[or clause
or clause
or clause
11[or clause
or
clause
or clause
or clause
or clause
of section 47];
13[
such assessee being a Hindu undivided family, by the mode referred to in sub-section
of section 64 at any time after the 31st day of December, 1969,]
1. Subs. by Act 17 of 2013, s. 4, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973)” (w.e.f. 12013).