Cost of acquisition rules clarify valuation and allocation for capital gains, with special treatment for intangibles and pre-existing equity holdings.
The provision defines cost of improvement and cost of acquisition for capital gains, treating improvements to specified intangibles as nil, excluding deductible expenditures, and reducing acquisition cost by prior depreciation on goodwill. It prescribes allocation rules for acquisitions by purchase, allotment, bonus, subscription and renunciation, and provides alternative valuation anchors-including an option to adopt a historic fair market value, exchange quotes, net asset value and the Cost Inflation Index-for certain pre-existing and unlisted equity holdings.

Exemption of capital gains for relocation to SEZs: reinvestment within prescribed window defers taxation, subject to deposit and scheme compliance
Exemption applies to capital gains from transfer of assets when shifting an industrial undertaking from an urban area to a Special Economic Zone, functioning as a reinvestment relief if gains are applied to acquire or construct specified new assets in the SEZ within one year before to three years after transfer. Unutilised amounts must be deposited with a specified institution by the return filing due date and later utilised under a notified scheme; any portion unutilised after three years is charged as income. Cost basis of the new asset is adjusted for subsequent transfers within three years.

Capital gains exemption on industrial relocation: reinvestment in new assets prevents taxation, subject to deposit and proof rules.
A reinvestment linked exemption for capital gains applies where assets used in an industrial undertaking situated in a urban area are transferred as part of shifting the undertaking outside urban limits. The assessee must, within one year before or three years after transfer, acquire specified new assets or incur notified scheme expenses; reinvestment equal to or exceeding the gain prevents charging of the gain, shortfalls are charged as income, and unutilised proceeds must be deposited under a notified scheme with proof filed by the return due date.

Capital gains relief for reinvestment into residential property requires timely deposit and triggers recapture if proceeds remain unutilised.
Provision grants a proportionate exemption from long term capital gains where individuals/HUFs reinvest proceeds from sale of a non residential long term asset into one residential house in India, subject to purchase/construction time windows. Unutilised proceeds must be deposited under a notified scheme by the return filing due date with proof; recapture applies if deposits are not used within three years. The enacted text ties deposit triggers to net consideration, shortens the disqualification window for subsequent purchases, and imposes monetary caps and heightened compliance obligations.

Roll over relief for capital gains: reinvestment in specified long term bonds defers tax subject to time, holding and cap conditions.
Relief defers tax on long term capital gains from transfer of land or building when reinvested within six months into notified long term bonds, with a statutory investment ceiling and a five year holding requirement; breach by transfer, conversion to money, or borrowing on the bond triggers deeming of previously exempted amounts as taxable long term capital gains and disallows a specified deduction for amounts claimed under the relief.

Capital gains deferral for compulsory acquisition where reinvestment in industrial undertaking preserves tax neutrality subject to deposit and timelines.
Section 84 conditions tax neutrality for capital gains on compulsory acquisition of industrial land/buildings where the assessee reinvests proceeds in a replacement asset within the prescribed reinvestment period; excess proceeds over new-asset cost are charged as income and certain cost-basis adjustments apply for disposals within the reinvestment period. Unutilised proceeds must be deposited in a specified institution and applied per a notified scheme by the return-filing due date, with documentary proof required and residual unutilised amounts charged as income.

Deemed consideration rule: stamp duty value treated as full consideration for capital gains when declared consideration is lower.
The provision deems the stamp duty value of land or building to be the full value of consideration for section 72 where declared consideration is lower, subject to a date of agreement exception conditioned on prescribed electronic/banking payment modes and a 110% safe harbour allowing actual consideration to prevail when stamp duty value does not exceed 110% of consideration; Assessing Officers may refer valuation claims to a Valuation Officer where the assessee asserts stamp duty value exceeds fair market value and the stamp duty value has not been contested.

Deeming of short-term capital gains where transfers from a depreciable block exceed transfer expenses, opening WDV and acquisition cost.
Section 74 prescribes that when consideration received or accruing in a tax year for transfers of one or more assets in a depreciable block exceeds, after deducting transfer-related expenditure, the opening written-down value of the block and the actual cost of additions during the year, the excess is deemed to be capital gains arising from the transfer of short-term capital assets; if the entire block is transferred in the year, cost of acquisition is the opening WDV plus costs of additions and resulting receipts are similarly deemed short-term capital gains.

Deemed cost of acquisition: prior-owner cost continuity and formulaic apportionment govern non purchase transfers and restructurings.
Section 73 prescribes deemed cost of acquisition rules for assets received by non-purchase modes: generally continuing the previous owner's cost (adjusted for improvements) and prescribing formulaic apportionment or fair market value bases for corporate reorganisations, mutual fund segregations/consolidations and specified instruments, with application guided by cross-references and delegated definitions.

Indexation of acquisition costs limited to prescribed computation item, narrowing administrative discretion and clarifying taxpayer application.
Section 72 prescribes that capital gains equal the full value of consideration less specified deductions (transfer expenditures, cost of acquisition and improvements), with indexation applying in prescribed contexts as indexed equivalents; it excludes certain items from deduction, provides cost adjustments for business trust distributions, grants specified entities additional prescribed deductions, and imposes special currency conversion and rupee appreciation rules for non residents, while defining indexed cost calculations by reference to a Cost Inflation Index.

Tax-neutrality for corporate reorganisations, IFSC fund relocations, non-resident transfers and conversions subject to specified conditions.
Section 70 treats specified transfers as not constituting a transfer for capital gains, rendering many corporate reorganisations, succession transfers, conversions, certain non-resident-to-non-resident transactions and relocations of foreign funds into IFSC-located resultant funds tax-neutral only where qualifying tests - including shareholding continuity, residency/domestic-company status, regulatory registration and non-taxation in the foreign jurisdiction - and documentary conditions are satisfied.

Specified derivative transaction criteria change tax classification and impose documentary and platform compliance obligations for derivative trades.
The enacted Section 66 narrows and reorders interpretive definitions governing Chapter IV D, alters key terms (including shifting focus from "commodity derivative" to "commodities transaction tax"), moves some enterprise classifications to notification based criteria, and changes successor/predecessor coverage. It also revises the functional tests and documentary preconditions for specified derivative transaction and speculative transaction status - emphasising electronic execution, prescribed platforms/intermediaries and time stamped contract notes with UCI and PAN - thereby creating clear compliance triggers and greater reliance on delegated notifications and rules.

Maintenance of books of account: record keeping duty for specified professions and businesses; Board to prescribe particulars and retention.
Section 62 requires maintenance of books and documents to enable computation of total income by specified professions, businesses meeting alternative income or turnover tests, and professions notified by the Board. The Board may prescribe the form, particulars, manner, place and retention periods. The enacted text repositions the Board's notification power into the definition of specified professions, corrects an apparent turnover threshold error for individuals/HUFs, and revises cross references affecting deemed profits carve outs; operational details depend on subsequent rules and the referenced tables.

Presumptive taxation for non resident activities fixes taxable profits on defined receipts and narrows audit relief.
Section 61 prescribes a presumptive taxation method for six specified non resident activities, fixing taxable profits as percentages of defined receipts (A and B) and supplying definitions and examples for those receipts; it bars deductions or losses against income so computed, prescribes written down value treatment, and permits audit based claims of lower actual profits only where expressly allowed and subject to strict bookkeeping and audit compliance, while the Act narrows those reliefs and clarifies definitional and non application provisions.

Presumptive taxation regime clarified for small businesses and goods carriage operators, altering computation and compliance timing.
Section 58 creates a presumptive taxation regime for small businesses, goods carriage operations and specified professions, prescribing turnover limits and fixed presumptive computation methods. Taxpayers may elect actual profits but must maintain books and obtain an audit if total income exceeds the basic exemption limit. The enacted text clarifies that receipts received by specified banking or online modes count for a lower percentage only if received during the tax year or before the due date, treats non account payee cheques/bank drafts as cash for cash tests, and expressly excludes goods carriage receipts from aggregation for monetary limits under book keeping/audit rules.

Deemed consideration: stamp duty value may be treated as full value where declared consideration is lower.
The provision deems the stamp duty value to be the full value of consideration for transfers of non-capital land or buildings where declared consideration is below stamp duty value, subject to a statutory tolerance that preserves actual consideration if stamp duty value is within a specified margin; agreement date stamp valuations may be used when agreement and registration dates differ provided consideration (or part) was received by specified banking/online modes on or before the agreement date, with determination mechanics governed by cross referenced valuation rules.

Amortisation rules for telecom spectrum and licence fees require time spread deductions and proceeds offset on transfer.
The section prescribes amortisation in equal instalments for four categories of expenditure-amalgamation/demerger costs, SVR payments, spectrum fees and licence fees-starting from specified initial tax years (event/payment or later of business commencement/payment) and, for spectrum/licence, running co terminous with the life of the right. Transfers of spectrum/licence rights trigger offsetting of proceeds against remaining unallowed expenditure with specified income inclusion rules and a formula for part transfers; amalgamation/demerger transfers to an Indian company preserve the section's application to the successor. Depreciation exclusion and reassessment mechanics for wrongful allowance are also provided.

Amortisation of prospecting expenditure permits staged tax deduction subject to funding reductions, exclusions and audit conditions.
Amortisation allows an Indian company or resident (other than a company) engaged in prospecting for specified minerals to capitalise qualifying expenditure incurred in the year of commercial production and up to four preceding years, claim periodic instalments after reducing amounts funded by others and realizations (sale, salvage, compensation, insurance), and excluding site/deposit acquisitions and depreciable capital assets; instalments are limited so as not to reduce income from commercial exploitation below nil, unallowed amounts may be carried forward within the overall amortisation period, and audit and prescribed reporting are required for non-company assessees.

Site restoration fund deductions for petroleum operations, with recapture on asset disposals governed by Schedule X.
Section 49 creates a Site Restoration Fund regime for petroleum and natural gas operations under a Central Government agreement, allowing deductions for deposits to a designated special account or site restoration account with computation governed by Schedule X. Withdrawals or transfers from those accounts are taxable in the year of withdrawal/transfer under Schedule X. The Act removes a clause in the Bill that explicitly deemed a portion of asset cost relatable to prior deductions as business income on sale within a specified holding period, instead delegating disposal and recapture rules to Schedule X.

Recapture on premature disposal reverses deduction for deposits into designated tea, coffee and rubber development accounts, taxing attributable cost on disposal.
Clause 48 permits a deduction for deposits into designated tea, coffee and rubber development accounts, with computation governed by Schedule IX; withdrawals or transfers are chargeable to tax in the year of transfer/withdrawal as per Schedule IX, and disposal of assets acquired under the scheme within the protective holding period results in deeming that portion of the asset cost attributable to earlier deductions as business income in the year of sale or transfer.