India - Income Tax Act 2010 - Saarc

1.343 CH. IV - COMPUTATION OF INCOME FROM CAPITAL GAINS S. 55Provided that if the amount deposited under this sub-section is not utilisedwholly or partly for all or any of the purposes mentioned in clauses (a) to (d) ofsub-section (1) within the period specified in that sub-section, 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.]81[Extension of time for acquiring new asset or depositing or investing amount ofcapital gain.54H. Notwithstanding anything contained in sections 54, 54B, 54D 82 [***]83[, 54EC] and 54F, where the transfer of the original asset is by wayof compulsory acquisition under any law and the amount of compensationawarded for such acquisition is not received by the assessee on the date of suchtransfer, the period for acquiring the new asset by the assessee referred to inthose sections or, as the case may be, the period available to the assessee underthose sections for depositing or investing the amount of capital gain in relationto such compensation as is not received on the date of the transfer, shall bereckoned from the date of receipt of such compensation :Provided that where the compensation in respect of transfer of the original assetby way of compulsory acquisition under any law is received before the 1st dayof April, 1991, the aforesaid period or periods, if expired, shall extend up to the31st day of December, 1991.]Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”.8455. (1) For the purposes of 85 [sections 48 and 49],—(a) 86 [***]87[(b) “cost of any improvement”,—(1) in relation to a capital asset being goodwill of a business 88 [or aright to manufacture, produce or process any article or thing]89[or right to carry on any business] shall be taken to be nil ; and81. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.82. “, 54E” omitted by the Finance Act, 1992, w.e.f. 1-4-1992.83. Substituted for “, 54EA, 54EB” by the Finance Act, 2001, w.e.f. 1-4-2001. Earlier the quotedfigures and letters were inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.84. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.85. Substituted for “sections 48, 49 and 50” by the Taxation Laws (Amendment & MiscellaneousProvisions) Act, 1986, w.e.f. 1-4-1988.86. Omitted, ibid. Prior to its omission, clause (a) was amended by the Taxation Laws(Amendment) Act, 1970, w.e.f. 1-4-1971, the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978 andthe Finance Act, 1986, w.e.f. 1-4-1987.87. Substituted for ‘ “cost of any improvement”, in relation to a capital asset,—’ by the FinanceAct, 1987, w.e.f. 1-4-1988.88. Inserted by the Finance Act, 1997, w.e.f. 1-4-1998.89. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.