SUMMARIZED TABLE OF COST OF ACQUSITION

S.No.TYPE OF CAPITAL ASSET COST OF ACQUSITION

If,
Goodwill, tenancy rights, route • Purchase → Purchase
permits, loom hours, right to Price • Self generated → NIL
1
carry on business, patents, FMV in both the cases is ignored even if acquired before
trademark, copyright 01.04.81
Distribution of assets on
2
partition of HUF
3 Gift, will or irrevocable trust

Transfer by holding company to

4 wholly owned subsidiary
company or vice versa

Transfer in case of
5
amalgamation
Previous owner
6 Transfer in case of demerger

Transfer in case of conversion of

7
firm into company

Transfer in case of conversion of

8 sole proprietary concern into
company

Allotment of shares in the

9 Amalgamating Company
amalgamated company

Shares/debentures in conversion
10 of debentures, bonds, debenture Debentures, bonds etc. so converted
stock, deposit certificate

11 Securities under ESOP FMV on the date of allotment

COA of shares in demerged company x Book value of assets transferred in demerger
12 Shares in the resulting company Net worth of the demerged company
Net worth = Paid up capital + reserves
Shares in the demerged
13 Original COA - Value of 12 (above)
company
Assets distributes to
14 FMV on the date of distribution
shareholders on liquidation
15 Original shares If acquired Actual payment

16 Bonus shares
•on/after 01.04.81 → NIL • Before 01.04.81 → FMV as on 01.04.81
Right shares purchased by
17 Price paid to the company
original shareholder
18 Right offer sold NIL

Person purchasing such offer

19 Price paid to the company + Price paid to the seller
from original shareholder

Net worth
20 Slump sale
Net worth = Assets - Liabilities