India - Income Tax Act 2010 - Saarc

S. 49 I.T. ACT, 1961 1.316other than that referred to in clause (i) or clause (ii) or clause (iii) 34 [or clause (iv)]of this 35 [sub-section].]36[(2) Where the capital asset being a share or shares in an amalgamatedcompany which is an Indian company became the property of the assessee inconsideration of a transfer referred to in clause (vii) of section 47, the cost ofacquisition of the asset shall be deemed to be the cost of acquisition to him of theshare or shares in the amalgamating company.]37[(2A) Where the capital asset, being a share or debenture of a company, becamethe property of the assessee in consideration of a transfer referred to in clause(x) or clause (xa) of section 47, the cost of acquisition of the asset to the assesseeshall be deemed to be that part of the cost of debenture, debenture-stock, bondor deposit certificate in relation to which such asset is acquired by the assessee.]38[(2AA) Where the capital gain arises from the transfer of specified security orsweat equity shares referred to in sub-clause (vi) of clause (2) of section 17, the costof acquisition of such security or shares shall be the fair market value which hasbeen taken into account for the purposes of the said sub-clause.]The following sub-section (2AAA) shall be inserted after sub-section (2AA) ofsection 49 by the Finance Act, 2010, w.e.f. 1-4-2011 :(2AAA) Where the capital asset being rights of a partner referred to in section 42of the Limited Liability Partnership Act, 2008 (6 of 2009) became the property ofthe assessee on conversion as referred to in clause (xiiib) of section 47, the cost ofacquisition of the asset shall be deemed to be the cost of acquisition to him of theshare or shares in the company immediately before its conversion.39[(2AB) Where the capital gain arises from the transfer of specified security orsweat equity shares, the cost of acquisition of such security or shares shall be thefair market value which has been taken into account while computing the valueof fringe benefits under clause (ba) of sub-section (1) of section 115WC.]40[(2B) 41 [***]34. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.35. Substituted for “section” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.36. Inserted, ibid.37. Substituted by the Finance Act, 2008, w.e.f. 1-4-2008. Prior to its substitution, sub-section(2A), as inserted by the Finance (No. 2) Act, 1991, w.r.e.f. 1-4-1962, read as under :“(2A) Where the capital asset, being a share or debenture in a company, became theproperty of the assessee in consideration of a transfer referred to in clause (x) of section47, the cost of acquisition of the asset to the assessee shall be deemed to be that part ofthe cost of debenture, debenture-stock or deposit certificates in relation to which suchasset is acquired by the assessee.”38. Substituted by the Finance (No.2) Act, 2009, w.e.f. 1-4-2010. Prior to its substitution, subsection(2AA), as inserted by the Finance Act, 2001, w.e.f. 1-4-2001, read as under :“(2AA) Where the capital gain arises from the transfer of the shares, debentures orwarrants, the value of which has been taken into account while computing the value ofperquisite under clause (2) of section 17, the cost of acquisition of such shares, debenturesor warrants shall be the value under that clause.”39. Inserted by the Finance Act, 2007, w.e.f. 1-4-2008.40. Sub-sections (2B), (2C) and (2D) inserted by the Finance Act, 1999, w.e.f. 1-4-2000.41. Omitted by the Finance Act, 2000, w.e.f. 1-4-2001. Prior to its omission, sub-section (2B)was inserted by the Finance Act, 1999, w.e.f. 1-4-2000.