India - Income Tax Act 2010 - Saarc

1.345 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 55(aa) 2 [in a case where, by virtue of holding a capital asset, being a share orany other security 3 , within the meaning of clause (h) of section 2 of theSecurities Contracts (Regulation) Act, 1956 (42 of 1956) (hereafter inthis clause referred to as the financial asset), the assessee—(A) becomes entitled to subscribe to any additional financialasset ; or(B) is allotted any additional financial asset without any payment,then, subject to the provisions of sub-clauses (i) and (ii) of clause (b)],—(i) in relation to the original financial asset, on the basis of which theassessee becomes entitled to any additional financial asset,means the amount actually paid for acquiring the originalfinancial asset ;(ii) in relation to any right to renounce the said entitlement tosubscribe to the financial asset, when such right is renounced bythe assessee in favour of any person, shall be taken to be nil inthe case of such assessee ;(iii) in relation to the financial asset, to which the assessee hassubscribed on the basis of the said entitlement, means the amountactually paid by him for acquiring such asset ;4[(iiia) in relation to the financial asset allotted to the assessee withoutany payment and on the basis of holding of any other financialasset, shall be taken to be nil in the case of such assessee ;] and(iv) in relation to any financial asset purchased by any person inwhose favour the right to subscribe to such asset has beenrenounced, means the aggregate of the amount of the purchaseprice paid by him to the person renouncing such right and theamount paid by him to the company or institution, as the case maybe, for acquiring such financial asset ;]5[(ab) in relation to a capital asset, being equity share or shares allotted toa shareholder of a recognised stock exchange in India under a schemefor 6 [demutualisation or] corporatisation approved by the Securitiesand Exchange Board of India established under section 3 of theSecurities and Exchange Board of India Act, 1992 (15 of 1992), shallbe the cost of acquisition of his original membership of the exchange:]2. Substituted for the portion beginning with the words “in a case where,” and ending withthe words “sub-clauses (i) and (ii) of clause (b)” by the Finance Act, 1995, w.e.f. 1-4-1996.Prior to its substitution, the quoted portion read as under :“in a case where, by virtue of holding a capital asset, being a share or any other securitywithin the meaning of clause (h) of section 2 of the Securities Contracts (Regulation) Act,1956 (42 of 1956) (hereafter in this clause referred to as the financial asset), the assesseebecomes entitled to subscribe to any additional financial asset, then, subject to theprovisions of sub-clauses (i) and (ii) of clause (b)”.3. For definition of “security”, see footnote 15 on p. 1.27 ante.4. Inserted by the Finance Act, 1995, w.e.f. 1-4-1996.5. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002.6. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.