Section 73 - Cost with reference to certain modes of acquisition

73. (1) In the case of a capital asset specified in column B of the Table below, the cost of acquisition of the asset shall be deemed to be the cost as mentioned in column C of the said Table. TABLE Sl. No. Description of the capital asset Cost of acquisition A B C 1. If the capital asset became the property The cost for which the previous of the assessee— owner of the property acquired (a) under a gift or will; or it, as increased by the cost of any improvement incurred or (b) by succession, inheritance or borne by the previous owner devolution; or or the assessee. (c) on any distribution of assets on the liquidation of a company; or (d) under a transfer to a revocable or an irrevocable trust; or (e) being a Hindu undivided family, by the mode referred to in section 99(3) after the 31st December, 1969; or (f) under any such transfer as is re- ferred to in section 70(1)(a), (c), (d), (e), (g), (h), (i), (j), (l), (m), (n), (o), (t), (u), (v), (w), (zd), (ze) or (zf). 2. Capital asset, being a share or shares The cost of acquisition to him in an amalgamated company which is of the share or the shares in the an Indian company that became the amalgamating company. property of the assessee in considera- tion of a transfer referred to in sec- tion 70(1)(f). 3. Capital asset being a share or debenture That part of the cost of of a company, which became the debenture, debenture-stock, property of the assessee in consideration bond or deposit certificate in of a transfer referred to in section 70(1) relation to which such asset is (z) or (za). acquired by the assessee. 4. Capital asset, being specified security Fair market value taken into or sweat equity shares, referred to in account for the purposes of the section 17(1)(d). said clause. 5. Capital asset, being rights of a partner The cost of acquisition to him referred to in section 42 of the Limited of the share or shares in the Liability Partnership Act, 2008 (6 of company immediately before 2009), which became the property of its conversion. the assessee on conversion as referred to in section 70(1)(ze). Sl. No. Description of the capital asset Cost of acquisition A B C 6. Capital asset, being share or shares of The price of the said share a company acquired by a non-resident or shares prevailing on any assessee on redemption of Global recognised stock exchange on Depository Receipts referred to in the date on which a request for section 209(1) (Table: Sl. No. 2) held redemption was made. by such assessee. 7. Capital asset, being a unit of a business The cost of acquisition to him trust, which became the property of the of the share referred to in the assessee in consideration of a transfer said clause. as referred to in section 70(1)(zi). 8. Capital asset, being a unit or units in The cost of acquisition to a consolidated scheme of a mutual him of the unit or units in the fund, which became the property of the consolidating scheme of the assessee in consideration of a transfer mutual fund. referred to in section 70(1)(zj). 9. Capital asset, being equity share of a That part of the cost of the company, which became the property preference shares in relation of the assessee in consideration to which such asset is acquired. of a transfer referred to in section 70(1)(zb). 10. Capital asset, being a unit or units in The cost of acquisition to a consolidated plan of a mutual fund him of the unit or units in scheme, which became the property the consolidating plan of the of the assessee in consideration scheme of the mutual fund. of a transfer referred to in section 70(1)(zk). 11. Capital asset being a unit or units in Computed as per the following the segregated portfolio. formula:— A×B X= , C where,— X = cost of acquisition of the unit or units in segregated portfolio; A = cost of acquisition of unit or units in the total portfolio; B = Net Asset Value of the asset transferred to the segregated portfolio; and C = Net Asset Value of the total portfolio immediately before segregation of portfolios. Sl. No. Description of the capital asset Cost of acquisition A B C 12. Capital asset being original units held The cost of acquisition of such by the unit holder in the main portfolio. original units as reduced by the amount as so arrived at under serial number 11. 13. Capital asset, being shares as referred The cost of acquisition to it of to in section 70(1)(zl) which became the interest in the joint venture the property of the assessee. referred to in the said clause. 14. Shares in the resulting company as a Computed as per the following result of demerger. formula:— A×B X= , C where,— X = cost of acquisition of shares in the resulting company; A = cost of acquisition of shares in demerged company; B = net book value of assets transferred in demerger; and C = net worth of demerged company immediately before demerger. 15. Original shares held by the shareholder The cost of acquisition of such in the demerged company. original shares as reduced by the amount so arrived at under serial number 14. 16. Capital asset deemed to be chargeable Cost for which such asset was to tax according to the provisions of acquired by the transferee section 71(1). company. 17. Capital asset being property, where the The value taken into account capital gain arises from the transfer under section 92(2)(m). of such property the value of which has been subject to income-tax under section 92(2)(m). 18. Capital asset declared under the Income The fair market value of the Declaration Scheme, 2016, where the asset taken into account for the tax, surcharge and penalty have been purposes of the said Scheme. paid as per the provisions of such Scheme on the fair market value as on the date of the commencement of that Scheme. Sl. No. Description of the capital asset Cost of acquisition A B C 19. Specified capital asset referred to The stamp duty value as on the in clause (c) of the Explanation to last day of the second tax year section 10(37A) of the Income-tax after the end of the tax year in Act, 1961 (43 of 1961), which has which the possession of the been transferred after the expiry of said specified capital asset was two years from the end of the tax handed over to the assessee. year in which the possession of such asset was handed over to the assessee. 20. Capital asset, being share in the project, The amount deemed as full in the form of land or building, or both, value of consideration under under section 67(14), not being a capital section 67(14). asset referred to in section 67(16). 21. Capital asset, being the asset held by The fair market value of the a trust or an institution in respect asset considered for compu- of which accreted income has been tation of accreted income as computed and tax paid thereon as per on specified date as per section section 352. 352(2). 22. Capital asset referred to in section The fair market value for 26(2)(j). section 26(2)(j). 23. Capital asset, being an Electronic Gold The cost of gold for the person Receipt issued by a Vault Manager, in whose name Electronic Gold which became the property of the Receipt is issued. person as consideration of a transfer, as referred to in section 70(1)(y). 24. Capital asset being gold released against The cost of the Electronic Gold an Electronic Gold Receipt, which Receipt for such person. became the property of the person as consideration for a transfer as referred to in section 70(1)(y). (2) For the purposes of the Table in sub-section (1), in respect of the entries against— (a) serial number 1, “previous owner of the property” for any capital asset owned by an assessee, means the last previous owner of the capital asset who acquired it by a mode of acquisition other than that referred to in column B thereof; (b) serial numbers 11 and 12, “main portfolio”, “segregated portfolio” and “total portfolio” shall have the same meanings as respectively assigned to them in the Circular No. SEBI/HO/IMD/DF2/CIR/P/2018/160, dated the 28th December, 2018, issued by the Securities and Exchange Board of India; (c) serial numbers 14 and 15, “net worth” means the total of the paid-up share capital and general reserves as appearing in the books of account of the demerged company immediately before the demerger; (d) serial numbers 2, 14 and 15, the provisions as contained therein, shall, as far as may be, also apply in relation to business reorganisation of a co-operative bank as referred to in section 64.