TaxTMI 
TaxTMI 
Question - What are the amendment proposed in section 49 of the Income-tax Act in Finance Bill 2015 ?
Cost of acquisition of a capital asset in the hands of resulting company to be the cost for which the demerged company acquired the capital asset
28 Feb 2015 
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Cost of acquisition rule amended to treat demerged assets as acquired at the demerged company's cost plus improvements.
Amendment provides that where a demerged company transfers a capital asset to a resulting company under the demerger provisions, the cost of acquisition in the hands of the resulting company shall be the cost for which the demerged company acquired the asset, increased by any cost of improvement incurred by the demerged company, and the holding period of the asset in the hands of the resulting company shall include the period for which the demerged company held the asset. (AI Summary)
Amendment provides that where a demerged company transfers a capital asset to a resulting company under the demerger provisions, the cost of acquisition in the hands of the resulting company shall be the cost for which the demerged company acquired the asset, increased by any cost of improvement incurred by the demerged company, and the holding period of the asset in the hands of the resulting company shall include the period for which the demerged company held the asset. (AI Summary)