Section 43C - Special provision for computation of cost of acquisition of certain assets

Cost basis for assets from amalgamation, HUF partition, gift, will or irrevocable trust under section 45(2) rules

Where an asset (other than one covered by section 45(2)) becomes the property of a company by amalgamation, or of an assessee by HUF partition, gift, will or irrevocable trust, and is thereafter sold as stock-in-trade after 29 February 1988, the cost of acquisition for computing business profits is determined as the original cost to the transferor/donor plus any cost of improvements and any expenditure wholly and exclusively incurred in connection with the transfer (including partition/gift/probate/ trust-creation costs and gift tax incurred by the transferor/donor).