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
....erty, and, where the capital asset became the property of the assessee 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 4....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to subscribe to such asset has been renounced, means the aggregate of the amount of the purchase price paid by him to the person renouncing such right and the amount paid by him to the 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 busi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... year in which the asset was held by the assessee or for the year beginning on the first day of April, 2001, whichever is later; (b) "Cost Inflation Index" shall have the meaning assigned to it in clause (v) of the Explanation to section 48; (c) "recognised stock exchange" shall have the meaning assigned 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 capi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....value, means diminished by any loss deducted or increased by any profit assessed, under the provisions of clause (iii) of sub-section (1) or clause (ii) of sub-section (1A) of section 32 or sub-section (2) or sub-section (2A) of section 41, as the case may be, the computation for this purpose being made with reference to the period commencing from the 1st day of April, 1974 in cases to which clause (2) of section 50 applies ;" Earlier, 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, 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 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" 21. Substituted vide Section 34 of the Finance Act, 1992 w.e.f. 01-04-1993 before it was read as, "1974" 22. 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" 23. Substituted vide Section 34 of the Finance Act, 1992 w.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 1....