Section 50A of Income Tax Act for AY 2023-24

Section 50A of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules 1962. Cost of acquisition in case of depreciable asset..

Amended and updated notes on section 50A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to special provision for cost of acquisition in case of depreciable asset.

Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 50A of IT Act 1961-2023 provides for special provision for cost of acquisition in case of depreciable asset.

Recently, we have discussed in detail section 50 (special provision for computation of capital gains in case of depreciable assets) of IT Act 1961. Today, we learn the provisions of section 50A of Income-tax Act 1961. The amended provision of section 50A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 50A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-50A: Special provision for cost of acquisition in case of depreciable asset

Where the capital asset is an asset in respect of which a deduction on account of depreciation under clause (i) of sub-section (1) of section 32 has been obtained by the assessee in any previous year, the provisions of sections 48 and 49 shall apply subject to the modification that the written down value, as defined in clause (6) of section 43, of the asset, as adjusted, shall be taken as the cost of acquisition of the asset.

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