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Feb 03, 2023
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Acquisition cost of intangible assets now nil
The Budget proposals specify that the cost of acquisition or the cost of improvement of an intangible asset or any other right, shall be nil.
This provision was introduced as courts in many cases have ruled against the I-T department that the capital gains computation mechanism would fail where the cost of acquisition of any asset cannot be determined. Earlier, the I-T Act was amended to provide that the cost of acquisition of goodwill would be nil. “This now covers intangibles like brands, trademarks and commercial rights,” said Girish Vanvari, founder of Transaction Square.
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