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52. Indexed cost of acquisition or improvement.
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52. Indexed cost of acquisition or improvement.—(1) The indexed cost of acquisition of an investment asset referred to in clause (i) of sub-section (3) of section 51 shall be the amount determined in accordance with the formula—
Where,
A = the cost of acquisition of the asset ;
B = the Cost Inflation Index for the financial year in which the asset is transferred ;
C = the Cost Inflation Index for the financial year in which the asset was acquired by the person or for the financial year beginning on the 1st day of April 2000, whichever is later.
(2) The indexed cost of improvement of an investment asset referred to in clause (ii) of sub-section (3) of section 51 shall be the amount determined in accordance with the formula—
Where,
A = the cost of improvement of the asset ;
B = the Cost Inflation Index for the financial year in which the asset is transferred ;
C = the Cost Inflation Index for the financial year in which the improvement to the asset took place or for the financial year beginning on the 1st day of April, 2000, whichever is later.
Clause 52 relates to indexed cost of acquisition or improvement. The indexed cost of acquisition of an investment asset referred to in sub-clause (3) of clause 51 for the purposes of computation of income from transfer of such asset shall be the amount determined in accordance with the formula specified in sub-clause (1) of the said clause.
The said clause further provides that the indexed cost of improvement of an investment asset referred to in sub-clause (3) of clause 51 shall be in accordance with the formula specified in sub-clause (2) of the said clause.
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