Cost of acquisition of an investment asset
51. (1) The cost of acquisition of an investment asset, other than the asset referred to in sub-section (2) to sub-section (5), shall be,-
(a) the purchase price of the asset, or
(b) at the option of the person, the fair market value of the asset on the 1st day of April, 2000, if the asset is acquired by the person before such date.
(2) The cost of acquisition of an investment asset specified in column 2 of the Seventeenth Schedule, acquired by the mode specified in column 3 of the said Schedule, shall be the cost specified in column 4 therein.
(3) The cost of acquisition of an investment asset acquired by the assessee by any of the special modes of acquisition, shall be,-
(a) the cost for which the previous owner of the asset acquired it; or
(b) at the option of the person, the fair market value of the asset on the 1st day of April, 2000, if the asset is acquired by the previous owner or the person before such date.
(4) The cost of acquisition of an investment asset forming part of a bundle of investment assets acquired by any participant, on distribution of the asset to him on account of his retirement from any unincorporated body, shall be the amount determined in accordance with the formula
|
A - (B + C) |
|
Where |
A |
= |
the amount payable to the participant as appearing in the books of account of the unincorporated body on the date of distribution; |
|
|
B |
= |
any amount attributable to the change in the value of the bundle on account of revaluation of the bundle, if any, up to the date of distribution; and |
|
|
C |
= |
the cost of acquisition of any other asset, if any, forming part of the bundle acquired by the participant, on distribution of the asset to him on account of his retirement from any incorporated body if the cost of acquisition has been allowed as a deduction under section 49 in any earlier financial year. |
(5) The cost of acquisition of an investment asset shall, regardless of anything to the contrary contained in this section, be nil, if,-
(a) the asset is acquired by self-generation; or
(b) the cost of acquisition of the asset to the person or previous owner, if any, is incapable of being determined or ascertained, for any reason.
(6) The Board may, for the purposes of sub-section (1), prescribe the cost of acquisition of any investment asset and the method of determination thereof, having regard to the nature of the investment asset, mode of acquisition and the circumstances in which the asset became the property of the person.
