India - Income Tax Act 2010 - Saarc

S. 55 I.T. ACT, 1961 1.3467[Provided that the cost of a capital asset, being trading or clearingrights of the recognised stock exchange acquired by a shareholderwho has been allotted equity share or shares under such scheme ofdemutualisation or corporatisation, shall be deemed to be nil;](b) in relation to any other capital asset,—](i) where the capital asset became the property of the assessee 8before the 9 [1st day of April, 10 [1981]], means the cost of acquisitionof the asset to the assessee or the fair 11 market value of the asseton the 12 [1st day of April, 13 [1981]], at the option of the assessee ;(ii) where the capital asset became the property of the assessee 14 byany of the modes specified in 15 [sub-section (1) of] section 49, andthe capital asset became the property of the previous ownerbefore the 16 [1st day of April, 17 [1981]], means the cost of thecapital asset to the previous owner or the fair 18 market value ofthe asset on the 16 [1st day of April, 17 [1981]], at the option of theassessee ;(iii) where the capital asset became the property of the assessee 18 onthe distribution of the capital assets of a company on itsliquidation and the assessee has been assessed to income-taxunder the head “Capital gains” in respect of that asset undersection 46, means the fair 18 market value of the asset on the dateof distribution ;(iv) 19 [***]20[(v) where the capital asset, being a share or a stock of a company,became the property of the assessee on—(a) the consolidation and division of all or any of the sharecapital of the company into shares of larger amount than itsexisting shares,7. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.8. For the meaning of the expression “became the property of the assessee”, see Taxmann’sDirect Taxes Manual, Vol. 3.9. Substituted for “1st day of January, *1964” by the Finance Act, 1986, w.e.f. 1-4-1987.*“1964" was substituted for “1954” by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.10. Substituted for “1974” by the Finance Act, 1992, w.e.f. 1-4-1993.11. For the meaning of term “fair”, see Taxmann’s Direct Taxes Manual, Vol. 3.12. Substituted for “1st day of January, *1964” by the Finance Act, 1986, w.e.f. 1-4-1987.*“1964” was substituted for “1954” by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.13. Substituted for “1974” by the Finance Act, 1992, w.e.f. 1-4-1993.14. For the meaning of the expression “became the property of the assessee”, see Taxmann’sDirect Taxes Manual, Vol. 3.15. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.16. Substituted for “1st day of January, *1964” by the Finance Act, 1986, w.e.f. 1-4-1987.*“1964” was substituted for “1954” by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.17. Substituted for “1974” by the Finance Act, 1992, w.e.f. 1-4-1993.18. For the meaning of the terms “became the property of the assessee” and “fair”, seeTaxmann’s Direct Taxes Manual, Vol. 3.19. Omitted by the Finance Act, 1966, w.e.f. 1-4-1966. Original clause (iv) was inserted by theFinance Act, 1964, w.e.f. 1-4-1964.20. Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.