India - Income Tax Act 2010 - Saarc

1.321 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 54Consideration for transfer in cases of understatement.52. 58 [Omitted by the Finance Act, 1987, w.e.f. 1-4-1988.]Exemption of capital gains from a residential house.53. 59 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]Profit on sale of property used for residence.6054. 61 [(1)] 62 [ 63 [Subject to the provisions of sub-section (2), where, in the caseof an assessee 64 being an individual or a Hindu undivided family], thecapital gain arises from the transfer of a long-term capital asset 65 [***], beingbuildings or 66 lands appurtenant thereto, and being a residential house, theincome of which is chargeable under the head “Income from house property”(hereafter in this section referred to as the original asset), and the assessee haswithin a period of 67 [one year before or two years after the date on which thetransfer took place purchased 68 ], or has within a period of three years after thatdate constructed, a residential house, then], instead of the capital gain beingcharged to income-tax as income of the previous year in which the transfer tookplace, it shall be dealt with in accordance with the following provisions of thissection, that is to say,—(i) if the amount of the capital gain 69 [is greater than the cost of 70 [theresidential house] so purchased or constructed (hereafter in thissection referred to as the new asset)], the difference between theamount of the capital gain and the cost of the new asset shall be58. Prior to omission, sub-section (2) of section 52 and its proviso were inserted by the FinanceAct, 1964, w.e.f. 1-4-1964 and the Finance Act, 1975, w.r.e.f. 1-4-1974, respectively. Theproviso was later amended by the Finance Act, 1978, w.r.e.f. 1-4-1974.59. Prior to its omission, section 53 was amended by the Taxation Laws (Amendment) Act,1984, w.e.f. 1-4-1985 and the Finance Act, 1987, w.e.f. 1-4-1988.60. See also Circular No. 471, dated 15-10-1986, Circular No. 520, dated 11-8-1988, CircularNo. 538, dated 13-7-1989, Circular No. 672, dated 16-12-1993, Circular No. 667, dated18-10-1993 and Circular No. 743, dated 6-5-1996. For details, see Taxmann’s Master Guideto Income-tax Act.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.61. Inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974.62. Substituted by the Finance Act, 1982, w.e.f. 1-4-1983.63. Substituted for “Where, in the case of an assessee being an individual” by the Finance Act,1987, w.e.f. 1-4-1988.64. For the meaning of the terms “assessee” and “lands appurtenant to building”, seeTaxmann’s Direct Taxes Manual, Vol. 3.65. “to which the provisions of section 53 are not applicable” omitted by the Finance Act, 1985,w.e.f. 1-4-1985.66. For the meaning of the terms “assessee” and “lands appurtenant to building”, seeTaxmann’s Direct Taxes Manual, Vol. 3.67. Substituted for “one year before or after the date on which the transfer took placepurchased” by the Finance Act, 1986, w.e.f. 1-4-1987.68. For the meaning of the term “purchased”, see Taxmann’s Direct Taxes Manual, Vol. 3.69. Substituted for “is greater than the cost of the new asset” by the Finance Act, 1978, w.r.e.f.1-4-1974.70. Substituted for “the house property” by the Finance Act, 1982, w.e.f. 1-4-1983.