Generally, cost of acquisition of a capital asset is the cost incurred in acquiring the capital asset. It includes the purchase consideration plus any expenditure incurred exclusively for acquiring the capital asset. However, in respect of capital asset acquired before 1st April, 2001, the cost of acquisition will be higher of the actual cost of acquisition of the asset or fair market value of the asset as on 1st April, 2001. This option is not available in the case of a depreciable asset.
Articles in this section
- What is the meaning of stamp duty value and what is its relevance while computing capital gain in case of transfer of capital asset, being land or building or both?
- Are there any bonds in which I can invest my capital gains to claim tax relief?
- Is there any benefit available in respect of reinvestment of capital gain in any other capital asset?
- At what rates capital gains are charged to tax?
- Are any capital gains exempt under section 10?
- I have sold a house which had been purchased by me 5 years ago. Am I required to pay any tax on the profit earned by me on account of such sale?
- What are the provisions relating to computation of capital gain in case of transfer of asset by way of gift, will, etc.?
- As per the Income-tax Law, gain arising on transfer of capital asset is charged to tax under the head “Capital gains”. What constitutes ‘transfer’ as per Income-tax Law?
- If any undisclosed income [in the form of investment in capital asset] is declared under Income Declaration Scheme, 2016, then what should be the cost of acquisition of such capital asset?
- In respect of capital asset acquired before 1st April, 2001 is there any special method to compute cost of acquisition?