India - Income Tax Act 2010 - Saarc

1.323 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 54BRelief of tax on capital gains in certain cases.54A. [Omitted by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972. Original sectionwas inserted by the Finance Act, 1965, w.e.f. 1-4-1965. The Direct Tax Laws(Amendment) Act, 1989 has deleted section 54A, dealing with relief of tax oncapital gains on transfer of property held under trust for charitable or religiouspurposes or by certain institution, earlier inserted by the Direct Tax Laws(Amendment) Act, 1987, w.e.f. 1-4-1989.]75[Capital gain on transfer of land used for agricultural purposes not to be chargedin certain cases.7654B. 77 [(1)] 78 [Subject to the provisions of sub-section (2), where the capitalgain arises] from the transfer of a capital asset being land which, in thetwo years immediately preceding the date on which the transfer took place,was being used by the assessee or a parent of his for agricultural purposes79[(hereinafter referred to as the original asset)], and the assessee has, within aperiod of two years after that date, purchased any other land for being used foragricultural purposes, then, instead of the capital gain being charged to incometaxas income of the previous year in which the transfer took place, it shall bedealt with in accordance with the following provisions of this section, that is tosay,—(i) if the amount of the capital gain is greater than the cost of the land sopurchased (hereinafter referred to as the new asset), the differencebetween the amount of the capital gain and the cost of the new assetshall be charged under section 45 as the income of the previous year;and for the purpose of computing in respect of the new asset anycapital gain arising from its transfer within a period of three years ofits purchase, the cost shall be nil; or(ii) if the amount of the capital gain is equal to or less than the cost ofthe new asset, the capital gain shall not be charged under section 45;and for the purpose of computing in respect of the new assetany capital gain arising from its transfer within a period of threeyears of its purchase, the cost shall be reduced, by the amount of thecapital gain.]80[(2) The amount of the capital gain which is not utilised by the assessee for thepurchase of the new asset before the date of furnishing the return of incomeunder section 139, shall be deposited by him before furnishing such return [suchdeposit being made in any case not later than the due date applicable in the case75. Inserted by the Finance Act, 1970, w.e.f. 1-4-1970.76. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.77. Inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974.78. Substituted for “Where the capital gain arises” by the Finance Act, 1987, w.e.f. 1-4-1988.79. Inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974.80. 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.