Capital Gains

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$Anu* (Querist)

13 January 2010 1. Can ICOA=COA? If yes then in what case?

2. ICOA = COA*CII 4 d yr in wich asset trnsfrd
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CII 4 d 1st yr in wich asset wz held by Assessee OR 4 d yr beg. on 1-4-81 wichever z later

ICOI = COI*CII 4 d yr in wich asset trnsfrd
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CII 4 d yr in wich Imprvmnt took place

Why in ICOI formula (IN BASE OR DENOMINATOR) "or 4 d yr beg. on 1-4-81 wichever z later" is not there???

3. What is the meaning of COA of shares in Demerged co.

What is demerged co.? Is it beore the demerger
or
after the demerger? Plz elaborate with help of example.

Sudhindra

Sudhindra (Expert)

14 January 2010 As per the provisions of the it act in case of cost of COA then the cost of acquisition prior to 1981 is also considered and since the base year is taken as 1981 therefore it is taken as 100 for indexation purpose, but in case of cost of improvement costs incurred prior to 1.4.1981 is considered as zero or not considered therefore the difference in the definition as for ICOA and ICOI .

As for ur second part of the question COA of shares in the demerged company would be cost of such shares had the demerger not occured, in other words cost would be cost of such shares prior to demerger.

$Anu*

$Anu* (Querist)

14 January 2010 Plz giv answer of point 1 also.

Sudhindra

Sudhindra (Expert)

15 January 2010 in case of short term capital gains cost of aquisition would be the ICOA ...where in the cost of acquisition would be the cost and no indexation is required...

and also in cases where the asset is bought and sold in the same year....

$Anu*

$Anu* (Querist)

16 January 2010 Sir means this question does not make any sense as it is(ICOA=COA) possible only in the case of short term and in short term indexation is not there

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