India - Income Tax Act 2010 - Saarc

1.317 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 50(2C) The cost of acquisition of the shares in the resulting company shall be theamount which bears to the cost of acquisition of shares held by the assessee inthe demerged company the same proportion as the net book value of the assetstransferred in a demerger bears to the net worth of the demerged companyimmediately before such demerger.(2D) The cost of acquisition of the original shares held by the shareholder in thedemerged company shall be deemed to have been reduced by the amount as soarrived at under sub-section (2C).]42[(2E) The provisions of sub-section (2), sub-section (2C) and sub-section (2D)shall, as far as may be, also apply in relation to business reorganisation of a cooperativebank as referred to in section 44DB.]Explanation.—For the purposes of this section, “net worth” shall mean theaggregate of the paid up share capital and general reserves as appearing in thebooks of account of the demerged company immediately before the demerger.]43[(3) Notwithstanding anything contained in sub-section (1), where the capitalgain arising from the transfer of a capital asset referred to in clause (iv) or, as thecase may be, clause (v) of section 47 is deemed to be income chargeable underthe head “Capital gains” by virtue of the provisions contained in section 47A, thecost of acquisition of such asset to the transferee-company shall be the cost forwhich such asset was acquired by it.]44[(4) Where the capital gain arises from the transfer of a property, the value ofwhich has been subject to income-tax under clause (vii) 44a [or clause (viia)] ofsub-section (2) of section 56, the cost of acquisition of such property shall bedeemed to be the value which has been taken into account for the purposes ofthe said clause (vii) 44a [or clause (viia)].]45[Special provision for computation of capital gains in case of depreciable assets.4650. Notwithstanding anything contained in clause (42A) of section 2, wherethe capital asset is an asset forming part of a block of assets in respect ofwhich depreciation has been allowed under this Act or under the Indian Income-42. Inserted by the Finance Act, 2007, w.e.f. 1-4-2008.43. Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.44. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009.44a. Inserted by the Finance Act, 2010, w.e.f. 1-6-2010.45. Substituted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986,w.e.f. 1-4-1988. Earlier section 50 was amended by the Finance Act, 1986, w.e.f. 1-4-1987and the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.46. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.