India - Income Tax Act 2010 - Saarc

S. 45 I.T. ACT, 1961 1.30243[***] 44 [54, 54B, 45 [***] 46 [ 47 [54D, 48 [54E, 49 [54EA, 54EB,] 54F 50 [, 54G and 54H]]]]],be chargeable to income-tax under the head “Capital gains”, and shall be deemedto be the income of the previous year in which the transfer took place.51[(1A) Notwithstanding anything contained in sub-section (1), where any personreceives at any time during any previous year any money or other assets underan insurance from an insurer on account of damage to, or destruction of, anycapital asset, as a result of—(i) flood, typhoon, hurricane, cyclone, earthquake or other convulsion ofnature; or(ii) riot or civil disturbance; or(iii) accidental fire or explosion; or(iv) action by an enemy or action taken in combating an enemy (whetherwith or without a declaration of war),then, any profits or gains arising from receipt of such money or other assets shallbe chargeable to income-tax under the head “Capital gains” and shall be deemedto be the income of such person of the previous year in which such money orother asset was received and for the purposes of section 48, value of any moneyor the fair market value of other assets on the date of such receipt shall bedeemed to be the full value of the consideration received or accruing as a resultof the transfer of such capital asset.Explanation.—For the purposes of this sub-section, the expression “insurer” shallhave the meaning assigned to it in clause (9) of section 2 52 of the Insurance Act,1938 (4 of 1938).]53[(2) Notwithstanding anything contained in sub-section (1), the profits or gainsarising from the transfer by way of conversion by the owner of a capital assetinto, or its treatment by him as stock-in-trade of a business carried on by himshall be chargeable to income-tax as his income of the previous year in whichsuch stock-in-trade is sold or otherwise transferred by him and, for the purposesof section 48, the fair market value of the asset on the date of such conversionor treatment shall be deemed to be the full value of the consideration receivedor accruing as a result of the transfer of the capital asset.]43. Figure “53,” omitted by the Finance Act, 1992, w.e.f. 1-4-1993.44. “53, 54 and 54B” substituted for “53 and 54” by the Finance Act, 1970, w.e.f. 1-4-1970; “53,54, 54B and 54C” substituted for “53, 54 and 54B” by the Finance Act, 1972, w.e.f. 1-4-1973and “53, 54, 54B, 54C and 54D” substituted for “53, 54, 54B and 54C” by the Finance Act,1973, w.e.f. 1-4-1974.45. “54C” omitted by the Finance Act, 1976, w.e.f. 1-4-1976.46. Substituted for “and 54D” by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.47. Substituted for “54D and 54E” by the Finance Act, 1982, w.e.f. 1-4-1983.48. Substituted for “54E and 54F” by the Finance Act, 1987, w.e.f. 1-4-1988.49. Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996.50. Substituted for “and 54G” by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991.51. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000.52. For definition of “insurer” under section 2(9) of the Insurance Act, 1938, see Appendix.53. Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985. Original subsection(2) was inserted by the Finance Act, 1964, w.e.f. 1-4-1964 and later on omitted bythe Finance Act, 1966, w.e.f. 1-4-1966.