India - Income Tax Act 2010 - Saarc

S. 48 I.T. ACT, 1961 1.31417[Provided also that where shares, debentures or warrants referred to in theproviso to clause (iii) of section 47 are transferred under a gift or an irrevocabletrust, the market value on the date of such transfer shall be deemed to be the fullvalue of consideration received or accruing as a result of transfer for thepurposes of this section :]18[Provided also that no deduction shall be allowed in computing the incomechargeable under the head “Capital gains” in respect of any sum paid on accountof securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004.]Explanation.—For the purposes of this section,—(i) “foreign currency” 19 and “Indian currency” 19 shall have the meaningsrespectively assigned to them in section 2 of the Foreign ExchangeRegulation Act, 1973 (46 of 1973);(ii) the conversion of Indian currency into foreign currency and thereconversion of foreign currency into Indian currency shall be at therate of exchange prescribed in this behalf;(iii) “indexed cost of acquisition” means an amount which bears to thecost of acquisition the same proportion as Cost Inflation Index forthe year in which the asset is transferred bears to the Cost InflationIndex for the first year in which the asset was held by the assesseeor for the year beginning on the 1st day of April, 1981, whichever islater;(iv) “indexed cost of any improvement” means an amount which bears tothe cost of improvement the same proportion as Cost Inflation Indexfor the year in which the asset is transferred bears to the Cost InflationIndex for the year in which the improvement to the asset tookplace;20[(v) “Cost Inflation Index”, in relation to a previous year, means such Indexas the Central Government may, having regard to seventy-five percent of average rise in the Consumer Price Index for urban nonmanualemployees for the immediately preceding previous year tosuch previous year, by notification 21 in the Official Gazette, specify, inthis behalf.]]17. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.18. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005.19. For definition of “foreign currency” and “Indian currency”, see footnote Nos. 51 & 32 onpages 1.64 and 1.437, respectively.20. Substituted by the Finance Act, 2000, w.r.e.f. 1-4-1993.21. Notified Cost Inflation Index for relevant financial year is as under :1981-82 : 100/1982-83 : 109/1983-84 : 116/1984-85 : 125/1985-86 : 133/1986-87 : 140/1987-88 : 150/1988-89 : 161/1989-90 : 172/1990-91 : 182/1991-92 : 199/1992-93 : 223/1993-94 :244/1994-95 : 259/1995-96 : 281/1996-97 : 305/1997-98 : 331/1998-99 : 351/1999-2000 :389/2000-01 : 406/2001-02 : 426/2002-03 : 447/2003-04 : 463/2004-05 : 480/2005-06 : 497/2006-07 : 519/2007-08 : 551/2008-09 : 582/2009-2010 : 632. For details, see Taxmann’sMaster Guide to Income-tax Act.