Cost of acquisition rule: shares received in amalgamation treated as deemed cost of shares in amalgamating company.

Amendment renumbers Section 49 as sub section (1), inserts "or clause (vi)" after "clause (v)" in sub clause (e) of clause (iii), and substitutes "sub section" for "section" in the Explanation. It adds sub section (2) providing a deemed cost of acquisition: when shares in an amalgamated Indian company become the assessee's property as consideration for a transfer under the clause (vii) transfer provision, the cost of those shares is deemed to be the cost to the assessee of the shares in the amalgamating company.

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