India - Income Tax Act 2010 - Saarc

1.319 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 50Cits transfer shall be deemed to be the capital gains arising from the transfer ofshort-term capital assets.(2) In relation to capital assets being an undertaking or division transferred byway of such sale, the “net worth” of the undertaking or the division, as the casemay be, shall be deemed to be the cost of acquisition and the cost of improvementfor the purposes of sections 48 and 49 and no regard shall be given to theprovisions contained in the second proviso to section 48.(3) Every assessee, in the case of slump sale, shall furnish in the prescribedform 49 along with the return of income, a report of an accountant as defined inthe Explanation below sub-section (2) of section 288, indicating the computationof the net worth of the undertaking or division, as the case may be, and certifyingthat the net worth of the undertaking or division, as the case may be, has beencorrectly arrived at in accordance with the provisions of this section.50[Explanation 1.—For the purposes of this section, “net worth” shall be theaggregate value of total assets of the undertaking or division as reduced by thevalue of liabilities of such undertaking or division as appearing in its books ofaccount :Provided that any change in the value of assets on account of revaluation ofassets shall be ignored for the purposes of computing the net worth.Explanation 2.—For computing the net worth, the aggregate value of total assetsshall be,—(a) in the case of depreciable assets, the written down value of the blockof assets determined in accordance with the provisions contained insub-item (C) of item (i) of sub-clause (c) of clause (6) of section 43;51[***]52[(b) in the case of capital assets in respect of which the whole of theexpenditure has been allowed or is allowable as a deduction undersection 35AD, nil; and(c) in the case of other assets, the book value of such assets.]]]53[Special provision for full value of consideration in certain cases.50C. (1) Where the consideration received or accruing as a result of the transferby an assessee of a capital asset, being land or building or both, is less than49. See rule 6H and Form No. 3CEA. Rule 12 provides that the return of income shall not beaccompanied by any document or copy of any account or form or report of audit requiredto be attached with return of income under any of the provisions of the Act.50. Explanation 1 and Explanation 2 substituted for Explanation by the Finance Act, 2000,w.e.f. 1-4-2000. Prior to its substitution, Explanation was inserted by the Finance Act, 1999,w.e.f. 1-4-2000.51. Word “and” omitted by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010.52. Substituted, ibid. Prior to its substitution, clause (b) read as under :“(b) in the case of other assets, the book value of such assets.”53. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.