India - Income Tax Act 2010 - Saarc

1.315 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 49Cost with reference to certain modes of acquisition.2249. 23 [(1)] Where the capital asset became the property of the assessee—(i) on any distribution of assets on the total or partial partition of a Hinduundivided family;(ii) under a gift or will;(iii) (a) by succession, inheritance or devolution 24 , or25[(b) on any distribution of assets on the dissolution of a firm, body ofindividuals, or other association of persons, where such dissolutionhad taken place at any time before the 1st day of April, 1987,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) 26 [or clause(v)] 27 [or clause (vi)] 28 [or clause (via)] 29 [or clause (viaa)] 30 [orclause (vica) or 30a [clause (vicb)] of section 47];31[(iv) such assessee being a Hindu undivided family, by the mode referredto in sub-section (2) of section 64 at any time after the 31st day ofDecember, 1969,]the cost of acquisition of the asset shall be deemed to be the cost for which theprevious owner of the property acquired it, as increased by the cost of anyimprovement of the assets incurred or borne by the previous owner or theassessee, as the case may be.32[Explanation.—In this 33 [sub-section] the expression “previous owner of theproperty” in relation to any capital asset owned by an assessee means the lastprevious owner of the capital asset who acquired it by a mode of acquisition22. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.23. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.24. For the meaning of the term “devolution”, see Taxmann’s Direct Taxes Manual, Vol. 3.25. Substituted by the Finance Act, 1987, w.e.f. 1-4-1988.26. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.27. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.28. Inserted by the Finance Act, 1992, w.e.f. 1-4-1993.29. Inserted by the Finance Act, 2005, w.e.f. 1-4-2005.30. Inserted by the Finance Act, 2007, w.e.f. 1-4-2008.30a. Words “clause (vicb) or clause (xiiib) of section 47” shall be substituted for the words“clause (vicb) of section 47” by the Finance Act, 2010, w.e.f. 1-4-2011.31. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.32. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.33. Substituted for “section” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.