19 August 2011
Relevant sections are 55(2)(aa)(iii) and 55(2)(aa(i) of the Income tax Act,1961. Those sections says as follows:- The cost of acquisition of rights shares is the amount which is paid by the subscriber to get them. In case a subscriber purchases the right shares on renunciation by an existing share holder, the cost of acquisition would include the amount paid by him to the person who has renounced the rights in his favour and also the amount which he pays to the company for subscribing to the shares.
21 August 2011
thanks sir, but i have one more doubt also. "does it means we will not index the cost if shareholder had paid to subscride the right share before 1-4-1981"
CAclubindia
