Accounting & Taxation Issues relating to Capital Market Transactions

‣ Cost of acquisition in the cases given in sec. 49 such as gift, will
etc. will be the cost to the previous owner.
‣ If asset acquired prior to 1.4.81 at the option of the assessee
actual cost of acquisitioner or Market value as on 1.4.1981
whichever suits him will be the cost of acquisition .
‣ For determining whether an asset is long term or short term
period of holding of previous owner will be considered in cases
covered U/s 49 such as gift, will etc.
‣ Indexation of cost of acquisition is to be considered as given in
sec. 48 explanation (iii).
‣ Period of holding in the cases covered U/s 49 such as gift, will
etc. for indexation of cost of acquisition is disputable.
(i) From the date of acquisition of previous owner –
Pushpa so far 81 ITDI (ITAT-Chd).
(ii) From the date of inheritance – Kishore kanvngo
102 ITD 437 (ITAT-MUM).
‣ Cost inflation index for different years is given below:
F.Y. Index F.Y. Index
1981-82 100 1994-95 259
1982-83 109 1995-96 281
1983-84 116 1996-97 305
1984-85 125 1997-98 331
1985-86 133 1998-99 351
1986-87 140 1999-2000 389
1987-88 150 2000-2001 406
1988-89 161 2001-2002 426
1989-90 172 2002-2003 447
1990-91 182 2003-2004 463
1991-92 199 2004-2005 480
1992-93 223 2005-2006 497
1993-94 244 2006-2007 519
] 2007-2008 551
2008-2009 582