Section 25 - Amendment of section 49. - Finance Act, 2020

Amendment of section 49. 25. In section 49 of the Income-tax Act, after sub-section (2AF), the following shall be inserted, namely: (2AG) The cost of acquisition of a unit or units in the segregated portfolio shall be the amount which bears, to the cost of acquisition of a unit or units held by the assessee in the total portfolio, the same proportion as the net asset value of the asset transferred to the segregated portfolio bears to the net asset value of the total portfolio immediately before the segregation of portfolios. (2AH) The cost of the acquisition of the original units held by the unit holder in the main portfolio shall be deemed to have been reduced by the amount as so arrived at under sub-section (2AG). Explanation . For the purposes of sub-section (2AG) and sub-section (2AH), the expressions main portfolio , segregated portfolio and total portfolio shall have the meanings respectively assigned to them in the circular No. SEBI/HO/IMD/DF2/CIR/P/2018/160, dated the 28th December, 2018, issued by the Securities and Exchange Board of India under section 11 of the Securities and Exchange Board of India Act, 1992. .( 15 of 1992.)