# The Finance Act, 1987, Section 25: Amendment of section 55

- Act: The Finance Act, 1987 (Act 11 of 1987)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1987/section/25/

## Text

Amendment of section 55 25. In section 55 if the Income-tax Act, with effect from the 1st day of April, 1988,— (a) in sub-section (1), in clause (b), for the words "cost of any improvement", in relation to a capital asset,—', the following shall be substituted, namely:— ' "cost of any improvement",— (1) in relation to a capital asset being good will of a business shall be taken to be nil; and (2) in relation to any other capital asset,-', (b) in sub-section (2), for the opening protion, the following shall be substituted, namely:— For the purposes of sections 48 and 49, ''cost of acqusition",— (a) in relation to a Capital asset, being good will of a business,— (i) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and (ii) in any other case, shall be taken to be nil; (b) in relation to any other capital asset,—' [Finance Act, 1987] © Copyright. Taxmann Publications Pvt. Ltd.

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