India - Income Tax Act 2010 - Saarc

1.271 CH. IV - COMPUTATION OF BUSINESS INCOME S. 43Government or a State Government or any authority establishedunder any law or by any other person, in the form of a subsidy or grantor reimbursement (by whatever name called), then, so much of thecost as is relatable to such subsidy or grant or reimbursement shallnot be included in the actual cost of the asset to the assessee :Provided that where such subsidy or grant or reimbursement is ofsuch nature that it cannot be directly relatable to the asset acquired,so much of the amount which bears to the total subsidy or reimbursementor grant the same proportion as such asset bears to all the assetsin respect of or with reference to which the subsidy or grant orreimbursement is so received, shall not be included in the actual costof the asset to the assessee.]77[Explanation 11.—Where an asset which was acquired outside Indiaby an assessee, being a non-resident, is brought by him to India andused for the purposes of his business or profession, the actual cost ofthe asset to the assessee shall be the actual cost to the assessee, asreduced by an amount equal to the amount of depreciation calculatedat the rate in force that would have been allowable had the assetbeen used in India for the said purposes since the date of its acquisitionby the assessee.]78[Explanation 12.—Where any capital asset is acquired by the assesseeunder a scheme for corporatisation of a recognised stock exchangein India, approved by the Securities and Exchange Board of Indiaestablished under section 3 of the Securities and Exchange Board ofIndia Act, 1992 (15 of 1992), the actual cost of the asset shall bedeemed to be the amount which would have been regarded as actualcost had there been no such corporatisation;]79[Explanation 13.—The actual cost of any capital asset on whichdeduction has been allowed or is allowable to the assessee undersection 35AD, shall be treated as ‘nil’,—(a) in the case of such assessee; and(b) in any other case if the capital asset is acquired or received,—(i) by way of gift or will or an irrevocable trust;(ii) on any distribution on liquidation of the company; and(iii) by such mode of transfer as is referred to in clauses (i), (iv),(v), (vi), (vib), 79a [(xiii) and (xiv)] of section 47;](2) “paid” means actually paid 80 or incurred according to the method ofaccounting upon the basis of which the profits or gains are computedunder the head “Profits and gains of business or profession”;77. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000.78. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002.79. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010.79a. Words “(xiii), (xiiib) and (xiv)” shall be substituted for “(xiii) and (xiv)” by the Finance Act,2010, w.e.f. 1-4-2011.80. For the meaning of the expression “actually paid”, see Taxmann’s Direct Taxes Manual,Vol. 3.