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Income-tax Act, 1961 Section - 49

Cost with reference to certain modes of acquisition

Cost with reference to certain modes of acquisition.

49. 14[(l)] Where the capital asset became the property of the assessee—

(i) on any distribution of assets on the total or partial partition of a Hindu undivided family ;

(ii) under a gift or will ;

(iii) (a) by succession, inheritance or devolution, or

(b) on any distribution of assets on the dissolution of a firm, body of individuals or other association of persons, or

(c) on any distribution of assets on the liquidation of a company, or

(d) under a transfer to a revocable or an irrevocable trust, or

(e) under any such transfer as is referred to in clause (iv) 15[or clause 0)] 14[or clause (vi)] of section-47 ;

16[(iv) such assessee being a Hindu undivided family, by the mode referred to in sub-section (2) of section-64 at any time after the 31st day of December, 1969,] the cost of acquisition of the assets shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be.

17[Explanation : In this 18[sub-section] the expression "previous owner of the property" in relation to any capital asset owned by an assessee means the last previous owner of the capital asset who acquired it by a mode of acquisition other than that referred to in clause (i) or clause (ii) or clause (iii) 19[or clause (iv)] of this 18[sub-section].]

19a[(2) Where the capital asset being a share or shares in an amalgamated company which is an Indian company became the property of the assessee in consideration of a transfer referred to in clause (vii) of section-47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share or shares in the amalgamating company.]

 

14. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.

15. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.

16. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.

17. Inserted by the Finance Act, 1965, w.e.f, 1-4-1965.

18. Substituted for "section"' by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.

19. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.

19a. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.

 

 

[As amended by the Finance Act, 1983]

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