SECTION 43 - Definitions of certain terms relevant to income from PGBP - Income Tax - Ready Reckoner - Income Tax

SECTION 43:- Definitions of certain terms relevant to income from PGBP In sections 28 to 41 of PGBP 'Actual cost' means actual cost of the asset to the assessee as reduced by that portion of cost met directly or indirectly by any other person. Provided actual cost of the motor acquired by the assessee is uded otherwise than in a business running it on hire for tourist, exceeds 25000/-, then excess of such cost shall be ignored and the actual cost shall be 25000/- Provided further where any expenditure is incurred by the assessee for acquisition of any asset in respect of which payment is made in a day, otherwise than a cheque or any other banking channel, and such payment exceeds 10,000/- , then such expenditure shall be ignored for determination of actual cost. (Inserted by FA, 2017, w.e.f. 1-4-2018) The actual cost of a capital asset on which deduction is allowed to the assessee u/s 35AD shall be treated to be nil in case of that assessee and in any other case if such asset is acquired on distribution or liquidation of a company and by way of gift or will or an irrevocable trust. Where a capital asset referred to in clause (via) of section 28 is used for the purposes of business or profession, the actual cost of such asset to the assessee shall be the fair market value which has been taken into account for the purposes of the said clause. [ Inserted vide THE FINANCE ACT, 2018 w.e.f. 1st day of April, 2019]. Provided that where any capital asset on which deduction u/s 35AD is allowed, is deemed to be the income of the assessee u/s 35AD(7B), then the actual cost of such asset shall be the actual cost to the aseessee as reduced by the amount of deprecialtion at the rate that would have been applied if the asset had been used for the purpose of business since its acquision date. (Inserted by FA, 2017, w.e.f. 1-4-2018)