India - Income Tax Act 2010 - Saarc

1.325 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 54Dthe assessee has within a period of three years after that date purchased anyother land or building or any right in any other land or building or constructedany other building for the purposes of shifting or re-establishing the saidundertaking or setting up another industrial undertaking, then, instead of thecapital gain being charged to income-tax as the income of the previous year inwhich the transfer took place, it shall be dealt with in accordance with thefollowing provisions of this section, that is to say,—(i) if the amount of the capital gain is greater than the cost of the land,building or right so purchased or the building so constructed (suchland, building or right being hereafter in this section referred to as thenew asset), the difference between the amount of the capital gain andthe cost of the new asset shall be charged under section 45 as theincome of the previous year; and for the purpose of computing inrespect of the new asset any capital gain arising from its transferwithin a period of three years of its purchase or construction, as thecase 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.]89[(2) The amount of the capital gain which is not utilised by the assessee for thepurchase or construction of the new asset before the date of furnishing thereturn of income under section 139, shall be deposited by him before furnishingsuch return [such deposit being made in any case not later than the due dateapplicable in the case of the assessee for furnishing the return of income undersub-section (1) of section 139] in an account in any such bank or institution asmay be specified in, and utilised in accordance with, any scheme 90 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,—89. Substituted by the Finance Act, 1987, w.e.f. 1-4-1988. Prior to substitution, sub-section (2)was inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974.90. For text of the Capital Gains Accounts Scheme, 1988—GSR 724(E), dated 22-6-1988 andfor list of authorised branches (except rural branches) of the banks specified to receivedeposits and maintain accounts—GSR 725(E), dated 22-6-1988, see Taxmann’s DirectTaxes Circulars.