Extension of Time for Reinvesting Capital Gain, original asset is compulsorily acquired, and compensation is delay Clause 89 of the Income Tax Bill, 2025 vs. Section 54H of the Income-tax Act, 1961

Extension of time for reinvesting capital gains tied to receipt of compensation preserves exemption eligibility after compulsory acquisition.

Where an original asset is compulsorily acquired and compensation is delayed, the period for acquiring a new asset or depositing or investing capital gains is calculated from the date of receipt of compensation rather than the date of transfer; Clause 89 of the Income Tax Bill, 2025, states this rule and declares it to operate irrespective of conflicting timelines in specified sections, and Section 54H of the Income-tax Act, 1961, operates on a comparable principle tied to specified reinvestment provisions.