No amount shall be included in the cost of the capital asset (B as outlined in the formula) for any expenditure incurred by a person where, a capital asset becomes the property of the person as outlined below: a gift or will; By succession, inheritance or devolution; A distribution of assets on dissolution of an association of persons; or On distribution of assets on liquidation of a company, the fair market value of the asset, on the date of its transfer or acquisition by the person shall be treated to be the cost of the asset. Deductions of losses in computing the amount chargeable under the head Gains” “Capital sec 38 Deductions shall be allowed under sec 38 for any loss on the disposal of a capital asset by the person in theyear. No loss shall be recognized under this ordinance on the disposal of the following capital assets: A painting, sculpture, drawing or other work of art Jewelry A rare manuscript, folio or book A postage stamp A coin or medallion or An antique Asset’ means property of any kind held by a tax payer, whether or not connected with ‘Capital businessbut does not include the following: Assets Excluded From the Definition of Asset” “Capital
No amount shall be included in the cost of the capital asset (B as outlined in the formula) for any expenditure incurred by a person where, a capital asset becomes the property of the person as outlined below: a gift or will; By succession, inheritance or devolution; A distribution of assets on dissolution of an association of persons; or On distribution of assets on liquidation of a company, the fair market value of the asset, on the date of its transfer or acquisition by the person shall be treated to be the cost of the asset. Deductions of losses in computing the amount chargeable under the head “Capital Gains” sec 38 Deductions shall be allowed under sec 38 for any loss on the disposal of a capital asset by the person in theyear. No loss shall be recognized under this ordinance on the disposal of the following capital assets: A painting, sculpture, drawing or other work of art Jewelry A rare manuscript, folio or book A postage stamp A coin or medallion or An antique ‘Capital Asset’ means property of any kind held by a tax payer, whether or not connected with businessbut does not include the following: Assets Excluded From the Definition of “Capital Asset”
Taxation%20Management-L5.docx