TaxTMI 
TaxTMI 
TaxTMI 
Capital gain on transfer of capital assets not to be charged in certain cases
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....capital gain the same proportion as the cost of acquisition of the new asset bears to the 7[net consideration] shall not be charged under section 45: 8[Provided that in a case where the original asset is transferred after the 28th day of February, 1983, the provisions of this sub-section shall not apply unless the assessee has invested or deposited the whole or, as the case may be, any part of the net consideration in the new asset by initially subscribing to such new asset:] 9[Provided further that in a case where the transfer of the original asset is by way of compulsory acquisition under any law and the full amount of compensation awarded for such acquisition is not received by the assessee on the date of such transfer, the period of six months referred to in this sub-section shall, in relation to so much of such compensation as is not received on the date of the transfer, be reckoned from the date immediately following the date on which such compensation is received by the assessee 10[or the 31st day of March, 1992, whichever is earlier].] Explanation 1.-11[For the purposes of this sub-section, "specified asset" means,- (a) in a case where the original asset is transferred....
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....ment Bonds as have been notified under clause (b) of Explanation 1 or as may be notified in this behalf under this clause by the Central Government; (iv) such debentures issued by the Housing and Urban Development Corporation Limited [a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956)], as the Central Government may, by notification in the Official Gazette, specify in this behalf;] 18[(d) in a case where the original asset is transferred after the 31st day of March, 1986, any of the assets specified in clause (c) and such bonds issued by any public sector company, as the Central Government may, by notification in the Official Gazette, specify in this behalf; 19[****]] 20[(e) in a case where the original asset is transferred after the 31st day of March, 1989, any of the assets specified in clauses (c) and (d) and such debentures or bonds issued by the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987), as the Central Government may, by notification in the Official Gazette, specify in this behalf.] 21[Explanation 2.-"Eligible issue of capital" shall have the meaning assigned to it in sub-se....
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....the date of such deposit, furnish to the 33[Assessing] Officer a certificate from the officer referred to in clause (b) of sub-section (1A) to the effect that the assessee has not taken any loan or advance on the security of such deposit during the said period of three years.] 34[(1C) Notwithstanding anything contained in sub-section (1), where the capital gain arises from the transfer of the original asset, made after the 31st day of March, 1992, in respect of which the assessee had received any amount by way of advance on or before the 29th day of February, 1992 and had invested or deposited the whole or any part of such amount in the new asset on or before the later date, then, the provisions of clauses (a) and (b) of sub-section (1) shall apply in the case of such investment or deposit as they apply in the case of investment or deposit under that sub-section.] (2) Where the new asset is transferred, or converted (otherwise than by transfer) into money, within a period of three years from the date of its acquisition, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in ....
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....1979 before it was read as, "full value of consideration received or accruing" 7. Substituted vide Section 8 of the Finance Act, 1979 w.e.f. 01-04-1979 before it was read as, "full value of such consideration" 8. Inserted vide Section 20 of the Finance Act, 1983 w.e.f. 01-04-1983 9. Inserted vide Section 16 of the Taxation Laws (Amendment) Act, 1984 w.e.f. 01-04-1984 10. Inserted vide Section 30 of the Finance Act, 1992 w.e.f. 01-04-1992 11. Substituted vide Section 8 of the Finance Act, 1979 w.e.f. 01-04-1979 before it was read as, "For the purposes of this sub-section and sub-section (3), "specified asset" means any of the following assets, namely:-" Earlier, Inserted vide Section 13 of the Finance Act, 1978 w.e.f. 01-04-1978 12. Inserted vide Section 13 of the Finance Act, 1978 w.e.f. 01-04-1978 13. Inserted vide Section 13 of the Finance Act, 1978 w.e.f. 01-04-1978 14. Inserted vide Section 8 of the Finance Act, 1979 w.e.f. 01-04-1979 15. Inserted vide Section 20 of the Finance Act, 1983 w.e.f. 01-04-1983 16. Inserted vide Section 20 of the Finance Act, 1983&....
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..... 01-04-1988 before it was read as, "capital assets other than short-term capital assets" 36. Inserted vide Section 13 of the Finance Act, 1978 w.e.f. 01-04-1978 37. Numbered vide Section 20 of the Finance Act, 1983 w.e.f. 01-04-1983 38. Substituted vide Section 8 of the Finance Act, 1979 w.e.f. 01-04-1979 before it was read as, "full value of the consideration or any part thereof received or accruing as a result of the transfer" 39. Substituted vide Section 8 of the Finance Act, 1979 w.e.f. 01-04-1979 before it was read as, "clause (vi)" 40. Inserted vide Section 20 of the Finance Act, 1983 w.e.f. 01-04-1983 41. Omitted vide Section 22 of the Finance Act, 1987 w.e.f. 01-04-1988 before it was read as, "(3) Where the transfer of the original asset is by way of compulsory acquisition under any law or where the full value of the consideration for the transfer of the capital asset is determined or approved by the Central Government or the Reserve Bank of India, and the compensation awarded for such acquisition or, as the case may be, the full value of the consideration so determined or approved is enhanced b....
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....tion to any additional compensation or additional consideration received after the 28th day of February, 1979, the National Rural Development Bonds referred to in clause (b) of Explanation 1 below sub-section (1); (c) in relation to any additional compensation or additional consideration received after the 28th day of February, 1983, in any of the assets referred to in clause (c) of Explanation 1 below sub-section (1) by way of initial subscription thereto; (iv) the capital gain attributable to the enhancement by any court, tribunal or other authority of the compensation for the compulsory acquisition of any capital asset or of the consideration for the transfer of any capital asset as determined or approved by the Central Government or the Reserve Bank of India shall be deemed to be so much of the capital gain arising from the transfer of the capital asset as bears to the whole of the capital gain as computed u/s. 48 by taking the compensation or consideration as so enhanced as the full value of the consideration received or accruing as a result of the transfer, the same proportion as the amount of additional compensation or consideration bears to the compensation or considera....