Section 75 - Special provision for cost of acquisition in case of depreciable asset
Where depreciation was claimed under the special electricity-generation method, cost and gain are computed under the dedicated rule rather than the normal block method.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Section 75 is presented using the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The general commencement date is 1 April 2026. Earlier years and saved proceedings may remain governed by the Income-tax Act, 1961 and the repeal/savings framework.
2-minute professional decode
Where depreciation was claimed under the special electricity-generation method, cost and gain are computed under the dedicated rule rather than the normal block method.
Who should test this section?
Section 75 matters to investors, property owners, promoters, companies, firms and advisers where the transaction involves special provision for cost of acquisition in case of depreciable asset; the charge, computation and relief steps should be separated.
Evidence to retain
The section 75 file should preserve acquisition and transfer instruments, valuation or stamp records, payment evidence, holding-period material and every document that supports the treatment of special provision for cost of acquisition in case of depreciable asset.
1961 Act bridge
| Legacy provision | Legacy heading | Mapping |
|---|---|---|
| 50A | Special provision for cost of acquisition in case of depreciable asset. | Renumbered / mapped |
The bridge is a research aid. Legacy case law carries over only after the current wording and transition rules are matched.
Rules and forms linked to this section
No provision-specific Rule was independently mapped from the current Rules register for this section. That does not mean the wider Rules are irrelevant.
Worked application
Prepare a hypothetical transaction involving special provision for cost of acquisition in case of depreciable asset. Identify the person, tax year, trigger, evidence and connected provision first; then apply section 75 step-by-step and document why each statutory condition is or is not met.
Common mistake
For section 75, do not jump from sale proceeds to a capital-gain number: first identify the transfer/charging event, then consideration, cost, timing and any exemption or rollover condition relevant to special provision for cost of acquisition in case of depreciable asset.
Compliance approach
Identify the statutory trigger for section 75, lock the relevant tax year, reconcile the facts to the operative sub-section, preserve the evidence trail and separately test every linked Rule, Form, Schedule and exception before finalising the return position.
Numeric / timing checkpoints in the operative text
- If depreciation has been obtained under section 33(2)for a capital asset in any tax year, the provisions of sections 72 and 73 shall apply subject to the modification that the written down value, as defined in section 41, of the asset, as adjusted, shall be taken as the cost of acquisition of the asset.
Related provisions
- Section 33
- Section 72
- Section 41
- Section 74
- Section 76
Current statutory text
Primary-source trail
- Consolidated Income-tax Act, 2025 (as amended by Finance Act, 2026) (official external source)
- Income Tax Department - Act/Rules/Forms hub (official external source)
- CBDT commencement material - Act operative from 1 April 2026 (official external source)
Source status: full Section 75 statutory text in the local source corpus; reconciled to the current consolidated Act control on 8 October 2026.