cost of acquisition?

Hello sourav,

I think the answer is

when shareholder recives assets at time of liquidation section 2(22)c,49 & 46(2) applicable.

as per sec 46(2)---- Shareholder pays taxes for capitalgain for reciveing assets on behalf his holding.

market value of asstes rec.                ------

+ any cash recived                                -----

- deemed dividend 2(22)c                   ----

_________________________________________

= Sales consideration for holding in co.

_________________________________________

as per sec 49 ----  cost of aquisition of the assets which he receives is Previous owner cost i.e. Co. & holding period is (his period+co. period).

As per section 46(2), if any asset is distributed as such on liquidation, the shareholder shall be liable to capital gain tax. The cost of such asset in the hands of shareholder shall be:

Situation 1: The assessee has been assessed to tax under the head capital gains at the time of such distribution, market value as at the date of distribution shall be the cost in the hands of assessee.

Situation 2: If the assessee has not been assessee to tax under the head capital gains [i.e., he has not been assessed on the basis of such market value u/s 46(2)], cost to previous owner shall be cost.

Any further clarifications are invited. 

Beautiful said Pavan

thanks pawan.......your explanation is quite satisfying.