Clause 52 - Cost of improvement - Direct Taxes Code Bill, 2009

Cost of improvement 52. (1) The cost of improvement of an investment asset shall be any expenditure of a capital nature incurred in making any additions or alterations to the asset ,- (a) by the person; or (b) by the previous owner, if the asset is acquired by any special modes of acquisition. (2) The cost of improvment of the investment asset, referred to in sub-section (1), shall, in a case where the cost of acquisition of the asset is taken as fair market value of the asset as on the 1st day of April, 2000, not include any capital expenditure referred therein, which is incurred before the 1st day of April, 2000. (3) The cost of improvement of an investment asset shall, regardless of anything to the contrary contained in sub-section (1), be 'nil' in relation to,- (a) an investment asset acquired by self generation; (b) any investment asset if the cost of improvement is incapable of being determined or ascertained, for any reason; and (c) any undertaking transferred in slump sale.