Cost of acquisition for capital gains tax purposes: Clause 73 of the Income Tax Bill, 2025 vs. Section 49 of the Income Tax Act, 1961

Cost of acquisition rules designate deemed cost for non purchase transfers, preserving prior owner's cost with specified formulas.

Clause 73 prescribes the deemed cost of acquisition for assets received by gift, will, inheritance or similar transfers as the cost incurred by the previous owner, adjusted for improvements; it prescribes fair market value for assets declared under the Income Declaration Scheme and specific formulae for units in mutual funds, business trusts and segregated portfolios, and ties cost continuity to original assets in corporate reorganisations.