Income Tax Act, 2025
Section 1: Ins. by Act 13 of 2018, s. 22 (w.e.f. 12018).
1. Ins. by Act 13 of 2018, s. 22 (w.e.f. 12018).
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1[Provided that the cost of a capital asset, being trading or clearing rights of the recognised
stock exchange acquired by a shareholder who has been allotted equity share or shares under such
scheme of demutualisation or corporatisation, shall be deemed to be nil;]
(b) in relation to any other capital asset,—]
(i) where the capital asset became the property of the assessee before the 2[1st day of
April, 2001], means the cost of acquisition of the asset to the assessee or the fairmarket value of
the asset on the 2[1st day of April, 2001], at the option of the assessee;
(ii) where the capital asset became the property of the assessee by any of the modes specified
in 3[sub-section (1) of section 49], and the capital asset became the property of the previous
owner before the 2[1st day of April, 2001], means the cost of the capital asset to the previous
owner or the fairmarket value of the asset on the 2[1st day of April, 2001], 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 itsliquidation and the assessee has been assessed to income-tax
under the head “Capital gains” in respect of that asset under section 46, means the fairmarket
value of the asset on the date of distribution;
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5[(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 sharecapital 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.
6[55A. Reference to Valuation Officer.—With a view to ascertaining the fair market value of a
capital asset for the purposes of this Chapter, the 7[Assessing Officer] may refer the valuation of capital
asset to a Valuation Officer—
(a) in a case where the value of the asset as claimed by the assessee is in accordance with the
estimate made by a registered valuer, if the 7[Assessing Officer] is of opinion that the value so
claimed 8[is at variance with its fair market value];
in relation to any other capital asset,—]
where the capital asset became the property of the assessee before the 2[1st day of
April, 2001], means the cost of acquisition of the asset to the assessee or the fairmarket value of
the asset on the 2[1st day of April, 2001], at the option of the assessee;
where the capital asset became the property of the assessee by any of the modes specified
in 3[sub-section
of section 49], and the capital asset became the property of the previous
owner before the 2[1st day of April, 2001], means the cost of the capital asset to the previous
owner or the fairmarket value of the asset on the 2[1st day of April, 2001], 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 itsliquidation and the assessee has been assessed to income-tax
under the head “Capital gains” in respect of that asset under section 46, means the fairmarket
value of the asset on the date of distribution;
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5[
where the capital asset, being a share or a stock of a company, became the property of
the assessee on—
the consolidation and division of all or any of the sharecapital of the company into
shares of larger amount than its existing shares,
the conversion of any shares of the company into stock,
the re-conversion of any stock of the company into shares,
the sub-division of any of the shares of the company into shares of smaller amount, or
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.
6[55A. Reference to Valuation Officer.—With a view to ascertaining the fair market value of a
capital asset for the purposes of this Chapter, the 7[Assessing Officer] may refer the valuation of capital
asset to a Valuation Officer—
in a case where the value of the asset as claimed by the assessee is in accordance with the
estimate made by a registered valuer, if the 7[Assessing Officer] is of opinion that the value so
claimed 8[is at variance with its fair market value];