Deduction for cost of acquisition, inflation-adjustment etc.
49. (1) The deductions for the purposes of section 47 shall, in the case of an investment asset, be the following:-
(i) the amount of expenditure, if any, incurred wholly and exclusively in connection with the transfer of the asset;
(ii) the cost of acquisition, if any, of the asset; and
(iii) the cost of improvement, if any, of the asset.
(2) However, if the investment asset is transferred at any time after one year from the end of the financial year in which the asset is acquired by the assessee, the deductions for the purposes of section 47 shall be the following:-
(i) the amount of expenditure, if any, incurred wholly and exclusively in connection with the transfer of the asset;
(ii) the indexed cost of acquisition, if any, of the asset;
(iii) the indexed cost of improvement, if any, of the asset; and
(iv) the amount of relief for rollover of the asset, as determined under section 53.
