India - Income Tax Act 2010 - Saarc

1.337 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 54F62[(3) Where the cost of the specified equity shares has been taken into accountfor the purposes of clause (a) or clause (b) of sub-section (1),—(a) a deduction from the amount of income-tax with reference to suchcost shall not be allowed under section 88 for any assessment yearending before the 1st day of April, 2006;(b) a deduction from the income with reference to such cost shall not beallowed under section 80C for any assessment year beginning on orafter the 1st day of April, 2006.]]63[Capital gain on transfer of certain capital assets not to be charged in case ofinvestment in residential house. 6454F. (1) 65 [Subject to the provisions of sub-section (4), where, in the case of anassessee being an individual or a Hindu undivided family], the capital gainarises from the transfer of any long-term capital asset, not being a residentialhouse (hereafter in this section referred to as the original asset), and the assesseehas, within a period of one year before or 66 [two years] after the date on whichthe transfer took place purchased, or has within a period of three years after thatdate constructed, a residential house (hereafter in this section referred to as thenew asset), the capital gain shall be dealt with in accordance with the followingprovisions of this section, that is to say,—(a) if the cost of the new asset is not less than the net consideration inrespect of the original asset, the whole of such capital gain shall notbe charged under section 45 ;(b) if the cost of the new asset is less than the net consideration in respectof the original asset, so much of the capital gain as bears to the wholeof the capital gain the same proportion as the cost of the new assetbears to the net consideration, shall not be charged under section 45:67[Provided that nothing contained in this sub-section shall apply where—(a) the assessee,—62. Substituted by the Finance Act, 2005, w.e.f. 1-4-2006. Prior to its substitution, sub-section(3) read as under:“(3) Where the cost of the specified equity shares has been taken into account for thepurposes of clause (a) or clause (b) of sub-section (1), a deduction from the amount ofincome-tax with reference to such cost shall not be allowed under section 88.”63. Inserted by the Finance Act, 1982, w.e.f. 1-4-1983.64. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.65. Substituted for “Where, in the case of an assessee being an individual” by the Finance Act,1987, w.e.f. 1-4-1988.66. Inserted, ibid.67. Substituted by the Finance Act, 2000, w.e.f. 1-4-2001. Prior to its substitution, proviso, asinserted by the Finance Act, 1982, w.e.f. 1-4-1983, read as under :‘Provided that nothing contained in this sub-section shall apply where the assessee ownson the date of the transfer of the original asset, or purchases, within the period of one yearafter such date, or constructs, within the period of three years after such date, anyresidential house, the income from which is chargeable under the head “Income fromhouse property”, other than the new asset.’