section 115TD : Cost of Acquisition of capital assets of entities

By | February 21, 2018
(Last Updated On: February 21, 2018)

CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL]DATED 15-2-2018

28. Cost of Acquisition of capital assets of entities in case of levy of tax on accreted income under section 115TD.

28.1 The provisions of the section 49 of the Income-tax Act provides for computation of cost with reference to certain modes of acquisition of capital asset.

28.2 The said section has been amended to provide that where the capital gain arises from the transfer of an asset, being the asset held by a trust or an institution in respect of which accreted income has been computed, and the tax has been paid thereon in accordance with the provisions of Chapter XII-EB, the cost of acquisition of such asset shall be deemed to be the fair market value of the asset which has been taken into account for computation of accreted income as on the specified date referred to in sub-section (2) of section 115TD of the Income-tax Act.

28.3 This amendment is consequential in nature.

28.4 Applicability: This amendment takes effect retrospectively from 1st June, 2016 and will, accordingly, apply from assessment year 2016-17 and subsequent assessment years.

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