Section 49. Service of notice of attachment

49. Service of notice of attachment. —A copy of the order of attachment shall be served on the defaulter. 49. Cost with reference to certain modes of acquisition. —[5] [(1)] Where the capital asset became the property of the assessee— (i) on any distribution of assets on the total or partial partition of a Hindu undivided family; (ii) under a gift or will; (iii) (a) by succession, inheritance or devolution, or 6[(b) on any distribution of assets on the dissolution of a firm, body of individuals, or other association of persons, where such dissolution had taken place at any time before the 1st day of April, 1987, or] (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) under any such transfer as is referred to in clause (iv)[7] [or clause (v)][8] [or clause (vi)][9] [or clause (via)][10] [or clause (viaa) or clause (viab) or clause (vib)[11] [or clause (vic)] or clause (vica) or clause (vicb) or clause (vicc)][12] [or clause (xiii) or clause (xiiib) or clause (xiv) of section 47]; 13[(iv) such assessee being a Hindu undivided family, by the mode referred to in sub-section (2) of section 64 at any time after the 31st day of December, 1969,] 1. Subs. by Act 17 of 2013, s. 4, for "the Foreign Exchange Regulation Act, 1973 (46 of 1973)" (w.e.f. 1-4-2013). 2. Subs. by Act 7 of 2017, s. 24 for "1st day of April, 1981" (w.e.f. 1-4-2018). 3. Subs. by Act 10 of 2000, s. 22, for clause (v) (w.e.f. 1-4-1993). 4. Subs. by Act 25 of 2014, s. 19, for "Consumer Price Index for Urban non-manual employees" (w.e.f. 1-4-2016). 5. Section 49 re-numbered as sub-section (1) thereof by Act 20 of 1967, s. 20 (w.e.f. 1-4-1967). 6. Subs. by Act 11 of 1987, s. 16, for sub-clause (b) (w.e.f. 1-4-1988). 7. Ins. by Act 10 of 1965, s. 16 (w.e.f. 1-4-1965). 8. Ins. by Act 20 of 1967, s. 20 (w.e.f. 1-4-1967). 9. Ins. by Act 18 of 1992, s. 25 (w.e.f. 1-4-1993). 10. Subs. by Act 20 of 2015, s. 15, for "or clause (viaa) or clause (vica) or clause (vicb)" (w.e.f. 1-4-2016). 11. Ins. by Act 7 of 2017, s. 25 (w.e.f. 1-4-2018). 12. Subs. by Act 23 of 2012, s. 16, for "clause (xiiib) of section 47" (w.e.f. 1-4-1999). 13. Ins. by Act 41 of 1975, s. 12 (w.e.f. 1-4-1976). the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be. 1[ Explanation .—In this 2[sub-section] the expression "previous owner of the property" in relation to 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 clause (i) or[[3]] [clause (ii) or clause ( iii clause (iv)] of this[2] [sub-section].] by a mode of acquisition other than that referred to in clause (i) or[[3]] [clause (ii) or clause (iii) or 4[(2) Where the capital asset being a share or shares in an amalgamated company which is an Indian company became the property of the assessee in consideration of a transfer referred to in clause (vii) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share or shares in the amalgamating company.] 5[(2A) Where the capital asset, being a share or debenture of a company, became the property of the assessee in consideration of a transfer referred to in clause (x) or clause (xa) of section 47, the cost of acquisition of the asset to the assessee shall be deemed to be that part of the cost of debenture, debenturestock, bond or deposit certificate in relation to which such asset is acquired by the assessee.] 6[(2AA) Where the capital gain arises from the transfer of specified security or sweat equity shares referred to in sub-clause (vi) of clause (2) of section 17, the cost of acquisition of such security or shares shall be the fair market value which has been taken into account for the purposes of the said sub-clause.] 7[(2AAA) Where the capital asset, being rights of a partner referred to in section 42 of the Limited Liability Partnership Act, 2008 (6 of 2009), became the property of the assessee on conversion as referred to in clause (xiiib) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share or shares in the company immediately before its conversion.] 8[(2AB) Where the capital gain arises from the transfer of specified security or sweat equity shares, the cost of acquisition of such security or shares shall be the fair market value which has been taken into account while computing the value of fringe benefits under clause (ba) of sub-section ( 1 section 115WC.] account while computing the value of fringe benefits under clause (ba) of sub-section (1) of [9] [(2ABB) Where the capital asset, being share or shares of a company, is acquired by a non-resident assessee on redemption of Global Depository Receipts referred to in clause (b) of sub-section (1) of section 115AC held by such assessee, the cost of acquisition of the share or shares shall be the price of such share or shares prevailing on any recognised stock exchange on the date on which a request for such redemption was made. Explanation .—For the purposes of this sub-section, "recognised stock exchange" shall have the meaning assigned to it in clause (ii) of the Explanation 1 to sub-section (5) of section 43.] [10] [(2AC) Where the capital asset, being a unit of a business trust, became the property of the assessee in consideration of a transfer as referred to in clause (xvii) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share referred to in the said clause.] [9] [(2AD) Where the capital asset, being a unit or units in a consolidated scheme of a mutual fund, became the property of the assessee in consideration of a transfer referred to in clause (xviii) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the unit or units in the consolidating scheme of the mutual fund.] 1. Ins. by Act 10 of 1965, s. 16 (w.e.f. 1-4-1965). 2. Subs. by Act 20 of 1967, s. 20, for "section" (w.e.f. 1-4-1967). 3. Subs. by Act 41 of 1975, s. 12, for "clause (ii) or clause (iii)" (w.e.f. 1-4-1976). 4. Ins. by Act 20 of 1967, s. 20 (w.e.f. 1-4-1967). 5. Subs. by Act 18 of 2008, s. 15, for sub-section (2A) (w.e.f. 1-4-2008). 6. Subs. by Act 33 of 2009, s. 23, for sub-section (2AA) (w.e.f. 1-4-2010). 7. Ins. by Act 14 of 2010, s. 20 (w.e.f. 1-4-2011). 8. Ins. by Act 22 of 2007, s. 17 (w.e.f 1-4-2008). 9. Ins. by Act 20 of 2015, s. 15 (w.e.f. 1-4-2015). 10. Ins. by Act 25 of 2014, s. 20 (w.e.f. 1-4-2015). 1[(2AE) Where the capital asset, being equity share of a company, became the property of the assessee in consideration of a transfer referred to in clause (xb) of section 47, the cost of acquisition of the asset shall be deemed to be that part of the cost of the preference share in relation to which such asset is acquired by the assessee.] 2[(2AF) Where the capital asset, being a unit or units in a consolidated plan of a mutual fund scheme, became the property of the assessee in consideration of a transfer referred to in clause (xix) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the unit or units in the consolidating plan of the scheme of the mutual fund.] 3* * * * * 4[(2C) The cost of acquisition of the shares in the resulting company shall be the amount which bears to the cost of acquisition of shares held by the assessee in the demerged company the same proportion as the net book value of the assets transferred in a demerger bears to the net worth of the demerged company immediately before such demerger. (2D) The cost of acquisition of the original shares held by the shareholder in the demerged company shall be deemed to have been reduced by the amount as so arrived at under sub-section (2C).] 5[(2E) The provisions of sub-section (2), sub-section (2C) and sub-section (2D) shall, as far as may be, also apply in relation to business reorganisation of a co-operative bank as referred to in section 44DB.] Explanation .—For the purposes of this section, "net worth" shall mean the aggregate of the paid up share capital and general reserves as appearing in the books of account of the demerged company immediately before the demerger.] 6[(3) Notwithstanding anything contained in sub-section (1), where the capital gain arising from the transfer of a capital asset referred to in clause (iv) or, as the case may be, clause (v) of section 47 is deemed to be income chargeable under the head "Capital gains" by virtue of the provisions contained in section 47A, the cost of acquisition of such asset to the transferee-company shall be the cost for which such asset was acquired by it.] 7[(4) Where the capital gain arises from the transfer of a property, the value of which has been subject to income-tax under clause (vii)[8] [or clause (viia)][2] [or clause (x)] of sub-section (2) of section 56, the cost of acquisition of such property shall be deemed to be the value which has been taken into account for the purposes of the said clause (vii)[8] [or clause (viia)][2] [or clause (x)].] 9[(5) Where the capital gain arises from the transfer of an asset declared under the Income Declaration Scheme, 2016, and the tax, surcharge and penalty have been paid in accordance with the provisions of the Scheme on the fair market value of the asset as on the date of commencement of the Scheme, the cost of acquisition of the asset shall be deemed to be the fair market value of the asset which has been taken into account for the purposes of the said Scheme.] 1. Ins. by Act 7 of 2017, s. 25 (w.e.f. 1-4-2018). 2. Ins. by s. 25, ibid . (w.e.f. 1-4-2017). 3. Sub-section (2B) omitted by Act 10 of 2000, s. 23 (w.e.f. 1-4-2000). 4. Ins. by Act 27 of 1999, s. 35 (w.e.f. 1-4-2000). 5. Ins. by Act 22 of 2007, s. 17 (w.e.f. 1-4-2008). 6. Ins. by Act 67 of 1984, s. 14 (w.e.f. 1-4-1985). 7. Ins. by Act 33 of 2009, s. 23 (w.e.f. 1-10-2009). 8. Ins. by Act 14 of 2010, s. 20 (w.e.f. 1-6-2010). 9. Ins. by Act 28 of 2016, s. 30 (w.e.f. 1-4-2017). 1[(6) Where the capital gain arises from the transfer of a specified capital asset referred to in clause (c) of the Explanation to clause (37A) of section 10, which has been transferred after the expiry of two years from the end of the financial year in which the possession of such asset was handed over to the assessee, the cost of acquisition of such specified capital asset shall be deemed to be its stamp duty value as on the last day of the second financial year after the end of the financial year in which the possession of the said specified capital asset was handed over to the assessee. Explanation .--For the purposes of this sub-section, "stamp duty value" means the value adopted or assessed or assessable by any authority of the State Government for the purpose of payment of stamp duty in respect of an immovable property. (7) Where the capital gain arises from the transfer of a capital asset, being share in the project, in the form of land or building or both, referred to in sub-section (5A) of section 45, not being the capital asset referred to in the proviso to the said sub-section, the cost of acquisition of such asset, shall be the amount which is deemed as full value of consideration in that sub-section;] 2[(8) 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.".] 3[(9) Where the capital gain arises from the transfer of a capital asset referred to in clause (via) of section 28, the cost of acquisition of such asset shall be deemed to be the fair market value which has been taken into account for the purposes of the said clause.] 4 — [50. Special provision for computation of capital gains in case of depreciable assets. Notwithstanding anything contained in clause (42A) of section 2, where the capital asset is an asset forming part of a block of assets in respect of which depreciation has been allowed under this Act or under the Indian Income-tax Act, 1922 (11 of 1922), the provisions of sections 48 and 49 shall be subject to the following modifications:— (1) where the full value of the consideration received or accruing as a result of the transfer of the asset together with the full value of such consideration received or accruing as a result of the transfer of any other capital asset falling within the block of the assets during the previous year, exceeds the aggregate of the following amounts, namely:— - (i) expenditure incurred wholly and exclusively in connection with such transfer or transfers; - (ii) the written down value of the block of assets at the beginning of the previous year; and (iii) the actual cost of any asset falling within the block of assets acquired during the previous year, such excess shall be deemed to be the capital gains arising from the transfer of short-term capital assets; (2) where any block of assets ceases to exist as such, for the reason that all the assets in that block are transferred during the previous year, the cost of acquisition of the block of assets shall be the written down value of the block of assets at the beginning of the previous year, as increased by the actual cost of any asset falling within that block of assets, acquired by the assessee during the previous year and the income received or accruing as a result of such transfer or transfers shall be deemed to be the capital gains arising from the transfer of short-term capital assets.] 5 [50A. Special provision for cost of acquisition in case of depreciable asset .—Where the capital asset is an asset in respect of which a deduction on account of depreciation under clause ( i sub-section (1) of section 32 has been obtained by the assessee in any previous year, the provisions of section 48 and 49 shall apply subject to the modification that the written down value, as defined in clause (6) of section 43, of the asset, as adjusted, shall be taken as the cost of acquisition of the asset.] asset is an asset in respect of which a deduction on account of depreciation under clause (i) of section 48 and 49 shall apply subject to the modification that the written down value, as defined in 1. Ins. by Act 7 of 2017, s. 25 (w.e.f. 1-4-2018). 2. Ins. by s. 25, ibid . (w.e.f. 1-6-2016). 3. Ins. by Act 13 of 2018, s. 19 (w.e.f. 1-4-2019). 4. Subs. by Act 46 of 1986, s. 9, for section 50 (w.e.f. 1-4-1988). 5. Ins. by Act 21 of 1998, s. 23 (w.e.f. 1-4-1998). 1 [50B. Special provision for computation of capital gains in case of slump sale. —(1) Any profits or gains arising from the slump sale effected in the previous year shall be chargeable to income-tax as capital gains arising from the transfer of long-term capital assets and shall be deemed to be the income of the previous year in which the transfer took place: Provided that any profits or gains arising from the transfer under the slump sale of any capital asset being one or more undertakings owned and held by an assessee for not more than thirty-six months immediately preceding the date of its transfer shall be deemed to be the capital gains arising from the transfer of short-term capital assets. (2) In relation to capital assets being an undertaking or division transferred by way of such sale, the "net worth" of the undertaking or the division, as the case may be, shall be deemed to be the cost of acquisition and the cost of improvement for the purposes of section 48 and 49 and no regard shall be given to the provisions contained in the second proviso to section 48. (3) Every assessee, in the case of slump sale, shall furnish in the prescribed form along with the return of income, a report of an accountant as defined in the Explanation below sub-section (2) of section 288, indicating the computation of the net worth of the undertaking or division, as the case may be, and certifying that the net worth of the undertaking or division, as the case may be, has been correctly arrived at in accordance with the provisions of this section. 2[ Explanation 1.—For the purposes of this section, "net worth" shall be the aggregate value of total assets of the undertaking or division as reduced by the value of liabilities of such undertaking or division as appearing in its books of account: Provided that any change in the value of assets on account of revaluation of assets shall be ignored for the purposes of computing the net worth. Explanation 2.—For computing the net worth, the aggregate value of total assets shall be,— (a) in the case of depreciable assets, the written down value of the block of assets determined in accordance with the provisions contained in sub-item (C) of item (i) of sub-clause (c) of clause (6) of section 43;[3] * 4[(b) in the case of capital assets in respect of which the whole of the expenditure has been allowed or is allowable as a deduction under section 35AD, nil; and (c) in the case of other assets, the book value of such assets.]]] 5 [50C. Special provision for full value of consideration in certain cases. —(1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted[6] [or assessed or assessable] by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted[6] [or assessed or assessable] shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer.] 7[Provided that where the date of the agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer: 1. Ins. by Act 27 of 1999, s. 36 (w.e.f. 1-4-2000). 2. Subs. by Act 10 of 2000, s. 24, for the Explanation (w.e.f. 1-4-2000).