TaxTMI 
TaxTMI 
Meaning of adjusted, cost of improvement and cost of acquisition
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by any of the modes specified in 9[sub-section (1) of] section 49, by the previous owner, but does not include any expenditure which is deductible in computing the income chargeable under the head "Interest on securities", "Income from house property", "Profits and gains of business or profession", or "Income from other sources", and the expression "improvement" shall be construed accordingly. (2) 10[For the purposes of sections 48 and 49, "cost of acquisition",- 40[(a) in relation to a capital asset, being goodwill of a business or profession, or a trade mark or brand name associated with a business or 43[profession, or any other intangible asset or a right] to manufacture, produce or process any article or thing, or right to carry on any business or profession, or tenancy rights, or stage carriage permits, or loom 44[hours, or any other right]- (i) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and (ii) in the case falling under sub-clauses (i) to (iv) of sub-section (1) of section 49 and where such asset was acquired by the previous owner (as defined in that section) by purchase, means....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... company or institution, as the case may be, for acquiring such financial asset ;] 17[(ab) in relation to a capital asset, being equity share or shares allotted to a shareholder of a recognised stock exchange in India under a scheme for 18[demutualisation or] corporatisation approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall be the cost of acquisition of his original membership of the exchange:] 19[Provided that the cost of a capital asset, being trading or clearing rights of the recognised stock exchange acquired by a shareholder who has been allotted equity share or shares under such scheme of demutualisation or corporatisation, shall be deemed to be nil;] 38[(ac) subject to the provisions of sub-clauses (i) and (ii) of clause (b), in relation to a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust referred to in section 112A, acquired before the 1st day of February, 2018, shall be higher of- (i) the cost of acquisition of such asset; and (ii) lower of- (A) the fair market value of such ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to it in clause (ii) of Explanation 1 to clause (5) of section 43.] (b) in relation to any other capital asset,-] (i) where the capital asset became the property of the assessee before the 34[1st day of April, 2001]], means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 35[1st day of April, 2001]], at the option of the assessee ; (ii) where the capital asset became the property of the assessee by any of the modes specified in 24[sub-section (1) of] section 49, and the capital asset became the property of the previous owner before the 36[1st day of April, 2001]], means the cost of the capital asset to the previous owner or the fair market value of the asset on the 37[1st day of April, 2001 ]], at the option of the assessee ; 39[Provided that in case of a capital asset referred to in sub-clauses (i) and (ii), being land or building or both, the fair market value of such asset on the 1st day of April, 2001 for the purposes of the said sub-clauses shall not exceed the stamp duty value, wherever available, of such asset as on the 1st day of April, 2001. Explanation.-For the purposes of this proviso, "stamp dut....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er, Amended vide Section 13 of the Taxation Laws (Amendment) Act, 1970 w.e.f. 01-04-1971 And was Amended vide Section 13 of the Finance Act, 1986 w.e.f. 01-04-1987 3. Substituted vide Section 25 of the Finance Act, 1987 w.e.f. 01-04-1988 before it was read as, ""cost of any improvement", in relation to a capital asset,-" 4. Inserted vide Section 19 of the Finance Act, 1997 w.e.f. 01-04-1998 5. Inserted vide Section 26 of the Finance Act, 2002 w.e.f. 01-04-2003 6. Substituted vide Section 13 of the Finance Act, 1986 w.e.f. 01-04-1987 before it was read as, "1st day of January, 1964" Earlier, Substituted vide Section 14 of the Finance (No. 2) Act, 1977 w.e.f. 01-04-1978 before it was read as, "1954" 7. Substituted vide Section 34 of the Finance Act, 1992 w.e.f. 01-04-1993 before it was read as, "1974" 8. Omitted vide Section 34 of the Finance Act, 1992 w.e.f. 01-04-1993 before it was read as, "and the fair market value of the asset on that day is taken as the cost of acquisition at the option of the assessee," 9. Inserted vide Section 21 of the Finance (No. 2) Act, 1967 w.e.f. 01-04-1967....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....e.f. 01-04-1993 before it was read as, "1974" 24. Inserted vide Section 21 of the Finance (No. 2) Act, 1967 w.e.f. 01-04-1967 25. Substituted vide Section 13 of the Finance Act, 1986 w.e.f. 01-04-1987 before it was read as, "1st day of January, 1964" Earlier, Substituted vide Section 14 of the Finance (No. 2) Act, 1977 w.e.f. 01-04-1978 before it was read as, "1954" 26. Substituted vide Section 34 of the Finance Act, 1992 w.e.f. 01-04-1993 before it was read as, "1974" 27. Substituted vide Section 13 of the Finance Act, 1986 w.e.f. 01-04-1987 before it was read as, "1st day of January, 1964" Earlier, Substituted vide Section 14 of the Finance (No. 2) Act, 1977 w.e.f. 01-04-1978 before it was read as, "1954" 28. Substituted vide Section 34 of the Finance Act, 1992 w.e.f. 01-04-1993 before it was read as, "1974" 29. Omitted vide Section 14 of the Finance Act, 1966 w.e.f. 01-04-1966 before it was read as, "(iv) where the capital asset, being a share of a company, was allotted to the assessee by way of bonus and the assessee is chargeable to income-tax under the head "Capital gains" in respect of such....