Cost Basis Rule for equity transfers sets acquisition cost as higher of actual cost or lower of FMV and consideration. An amendment to section 55(2) prescribes that for long-term equity shares, equity-oriented fund units, or specified business trust units acquired before 1 February 2018, the cost of acquisition is the higher of actual cost and the lower of fair market value and full value of consideration; the Explanation specifies fair market value methods for listed securities, unlisted units, and shares that become listed, and cross refers definitions of Cost Inflation Index and recognised stock exchange.
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 Basis Rule for equity transfers sets acquisition cost as higher of actual cost or lower of FMV and consideration.
An amendment to section 55(2) prescribes that for long-term equity shares, equity-oriented fund units, or specified business trust units acquired before 1 February 2018, the cost of acquisition is the higher of actual cost and the lower of fair market value and full value of consideration; the Explanation specifies fair market value methods for listed securities, unlisted units, and shares that become listed, and cross refers definitions of Cost Inflation Index and recognised stock exchange.
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