Amendment on treatment of Assets acquired before 01/04/2001

Cost of Acquisition: If an assets is acquired before 01/04/2001 its cost of acquisition shall be higher of the following:

(a) Actual cost of acquisition (ignoring cost of improvement

incurred before 01/04/2001)

OR

(b) Fair Market Value of assets as on 01/04/2001 (Section 55)

Exception: Option is not available in case of

(a) Assets on which depreciation is allowed under section 32(i)(ii)

(b) Self Generated Assets (other than bonus shares)

NOTE: In case of capital assets, being land or building or both, Fair Market Value of such assets on 01/04/2001 shall not exceed stamp duty value of such asset as on 01/04/2001.

Cost of Improvement: Any cost of improvement incurred by assessee or previous owner before 01/04/2001 shall not be considered.

Indexation : Where a asset acquired before 01/04/2021, then indexation benefit shall be available from the year 2001-02.