Cost of acquisition rules set valuation options and special bases affecting capital gains tax calculations. Cost of acquisition is generally the purchase price, with an option to use fair market value as of 1 April 2000 for assets acquired before that date. Special modes and scheduled assets adopt prescribed costs or the previous owner's acquisition cost (subject to the 1 April 2000 election). Specific rules set cost as fair market value or stamp duty values for certain clauses, net worth for slump sales, and A - (B + C) for bundle distributions on retirement. Cost is nil for self-generated assets, assets with enhanced compulsory-acquisition compensation, and where cost cannot be ascertained.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Cost of acquisition rules set valuation options and special bases affecting capital gains tax calculations.
Cost of acquisition is generally the purchase price, with an option to use fair market value as of 1 April 2000 for assets acquired before that date. Special modes and scheduled assets adopt prescribed costs or the previous owner's acquisition cost (subject to the 1 April 2000 election). Specific rules set cost as fair market value or stamp duty values for certain clauses, net worth for slump sales, and A - (B + C) for bundle distributions on retirement. Cost is nil for self-generated assets, assets with enhanced compulsory-acquisition compensation, and where cost cannot be ascertained.
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