Cost of acquisition rules for investment assets define permissible cost bases, special acquisition modes, bundle distributions, and nil-cost cases. The cost of acquisition for investment assets is generally the purchase price or, optionally, the fair market value on the reference date for pre-date ... Summary
Cost of acquisition rules for investment assets define permissible cost bases, special acquisition modes, bundle distributions, and nil-cost cases.
The cost of acquisition for investment assets is generally the purchase price or, optionally, the fair market value on the reference date for pre-date acquisitions; specified assets follow Seventeenth Schedule costs. Special-mode acquisitions use the previous owner's cost or the reference-date fair market value by option. Bundle distributions on retirement use the formula A - (B + C). Cost is nil for self-generated assets or where acquisition cost cannot be determined. The Board may prescribe costs and methods of determination.
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