India - Income Tax Act 2010 - Saarc

S. 54 I.T. ACT, 1961 1.32271[***]charged under section 45 as the income of the previous year; and forthe purpose of computing in respect of the new asset any capital gainarising from its transfer within a period of three years of its purchaseor construction, as the case may be, the cost shall be nil; or(ii) if the amount of the capital gain is equal to or less than the cost of thenew asset, the capital gain shall not be charged under section 45; andfor the purpose of computing in respect of the new asset any capitalgain arising from its transfer within a period of three years of itspurchase or construction, as the case may be, the cost shall bereduced by the amount of the capital gain.72[(2) The amount of the capital gain which is not appropriated by the assesseetowards the purchase of the new asset made within one year before the date onwhich the transfer of the original asset took place, or which is not utilised by himfor the purchase or construction of the new asset before the date of furnishingthe return of income under section 139, shall be deposited by him beforefurnishing such return [such deposit being made in any case not later than thedue date applicable in the case of the assessee for furnishing the return of incomeunder sub-section (1) of section 139] in an account in any such bank or institutionas may be specified in, and utilised in accordance with, any scheme 73 which theCentral Government may, by notification in the Official Gazette, frame in thisbehalf and such return shall be accompanied by proof of such deposit; and, forthe purposes of sub-section (1), the amount, if any, already utilised by theassessee for the purchase or construction of the new asset together with theamount so deposited shall be deemed to be the cost of the new asset :Provided that if the amount deposited under this sub-section is not utilisedwholly or partly for the purchase or construction of the new asset within theperiod specified in sub-section (1), then,—(i) the amount not so utilised shall be charged under section 45 as theincome of the previous year in which the period of three years fromthe date of the transfer of the original asset expires; and(ii) the assessee shall be entitled to withdraw such amount in accordancewith the scheme aforesaid.Explanation.— 74 [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]71. Omitted by the Finance Act, 1987, w.e.f. 1-4-1988. Original Explanation was inserted by theFinance Act, 1982, w.e.f. 1-4-1983.72. Substituted by the Finance Act, 1987, w.e.f. 1-4-1988. Earlier, it was inserted by the FinanceAct, 1978, w.r.e.f. 1-4-1974 and amended by the Finance Act, 1982, w.e.f. 1-4-1983 and theFinance Act, 1986, w.e.f. 1-4-1987.73. For text of Capital Gains Accounts Scheme, 1988—GSR 724(E), dated 22-6-1988 and forlist of authorised branches (except rural branches) of the banks specified to receivedeposits and maintain account—GSR 725(E), dated 22-6-1988, see Taxmann’s DirectTaxes Circulars.74. Prior to its omission, Explanation was amended by the Finance (No. 2) Act, 1991, w.e.f.1-4-1992.