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TMI BlogMeaning of adjusted, cost of improvement and cost of acquisitionX X X X Extracts X X X X X X X X Extracts X X X X ..... became the property of the assessee by any of the modes specified in 9 [ sub-section (1) of ] section 49, by the previous owner, but does not include any expenditure which is deductible in computing the income chargeable under the head Interest on securities , Income from house property , Profits and gains of business or profession , or Income from other sources , and the expression improvement shall be construed accordingly. (2) 10 [ For the purposes of sections 48 and 49, cost of acquisition ,- 40 [ (a) in relation to a capital asset, being goodwill of a business or profession, or a trade mark or brand name associated with a business or 43 [ profession, or any other intangible asset or a right ] to manufacture, produce or process any article or thing, or right to carry on any business or profession, or tenancy rights, or stage carriage permits, or loom 44 [ hours, or any other right ] - (i) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and (ii) in the case falling under sub-clauses (i) to (iv) of sub-section (1) of section 49 and where such asset was acquired by the previous owner (as defined in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount paid by him to the company or institution, as the case may be, for acquiring such financial asset ; ] 17 [ ( ab ) in relation to a capital asset, being equity share or shares allotted to a shareholder of a recognised stock exchange in India under a scheme for 18 [ demutualisation or ] corporatisation approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall be the cost of acquisition of his original membership of the exchange: ] 19 [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 ; ] 38 [(ac) subject to the provisions of sub-clauses (i) and (ii) of clause (b), in relation to a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust referred to in section 112A, acquired before the 1st day of February, 2018, shall be higher of- (i) the cost of acquisition of such asset; and (ii) lower of- (A) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to it in clause (ii) of Explanation 1 to clause (5) of section 43.] ( b ) in relation to any other capital asset,- ] ( i ) where the capital asset became the property of the assessee before the 34 [ 1st day of April, 2001 ] ], means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 35 [ 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 24 [ sub-section (1) of ] section 49, and the capital asset became the property of the previous owner before the 36 [ 1st day of April, 2001 ] ] , means the cost of the capital asset to the previous owner or the fair market value of the asset on the 37 [ 1st day of April, 2001 ] ], at the option of the assessee ; 39 [Provided that in case of a capital asset referred to in sub-clauses (i) and (ii), being land or building or both, the fair market value of such asset on the 1st day of April, 2001 for the purposes of the said sub-clauses shall not exceed the stamp duty value, wherever available, of such asset as on the 1st day of April, 2001. Explanation .-For the purposes of this proviso, stamp d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act, 1992, w.e.f. 1-4-1993. 8. Words and the fair market value of the asset on that day is taken as the cost of acquisition at the option of the assessee, omitted by the Finance Act, 1992, w.e.f. 1-4-1993. 9. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967. 10. Substituted for 'For the purposes of sections 48 and 49, cost of acquisition , in relation to a capital asset,-' by the Finance Act, 1987, w.e.f. 1-4-1988. 11. Substituted for clause (a) by the Finance Act, 1994, w.e.f. 1-4-1995. 12. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 13. Inserted by the Finance Act, 1997, w.e.f. 1-4-1998. 14. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003. 15. Substituted for the portion beginning with the words in a case where, and ending with the words sub-clauses (i) and (ii) of clause (b) by the Finance Act, 1995, w.e.f. 1-4-1996. Prior to its substitution, the quoted portion read as under : in a case where, by virtue of holding a capital asset, being a share or any other security within the meaning of clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) (hereafter in this clause referred to as the financial asset), the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NCE ACT, 2018 w.e.f. 1st day of April, 2018 39. Inserted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2021 40. Substituted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 01-04-2021 before it was read as 11 [ ( a ) in relation to a capital asset, being goodwill of a business 12 [ or a trade mark or brand name associated with a business ] 13 [ or a right to manufacture, produce or process any article or thing ] 14 [ or right to carry on any business ], 32 [ or profession ] tenancy rights, stage carriage permits or loom hours,- ( i ) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price ; and ( ii ) in any other case [ not being a case falling under sub-clauses ( i ) to ( iv ) of sub-section (1) of section 49 ], shall be taken to be nil ; 41. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 42. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 43. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 before it was read as, profession, or a right 44. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2024 before it was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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