Income Tax Act, 2025
Section 6: Ins. by Act 23 of 2012, s. 17 (w.e.f. 12013).
6. Ins. by Act 23 of 2012, s. 17 (w.e.f. 12013).
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51. Advance money received.—Where any capital asset was on any previous occasion the subject of
negotiations for its transfer, any advance or other money received and retained by the assessee in respect
of such negotiations shall be deducted from the cost for which the asset was acquired or the written down
value or the fair market value, as the case may be, in computing the cost of acquisition:
1[Provided that where any sum of money, received as an advance or otherwise in the course of
negotiations for transfer of a capital asset, has been included in the total income of the assessee for any
previous year in accordance with the provisions of clause (ix) of sub-section (2) of section 56, then, such
sum shall not be deducted from the cost for which the asset was acquired or the written down value or the
fair market value, as the case may be, in computing the cost of acquisition.]
52. [Consideration for transfer in cases of understatement.]—Omitted by the Finance Act, 1987 (11
of 1987), s. 17 (w.e.f. 11988). Earlier amended by Act 5 of 1964, s. 13 (w.e.f. 11964), Act 25 of
1975, s. 9 (w.e.f. 11974) and Act 19 of 1978, s. 9 (w.e.f. 11974).
53. [Exemption of capital gains from a residential house.]—Omitted by the Finance Act, 1992 (18 of
1992), s. 26 (w.e.f. 11993). Earlier substituted by Act 67 of 1984, s. 15 (w.e.f. 11985) and amended
by Act 11 of 1987, s. 18 (w.e.f. 11988).
54. Profit on sale of property used for residence.—2[(1)] 3[4[Subject to the provisions of
sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family], the
capital gain arises from the transfer of a long-term capital asset 5***, being buildings or lands appurtenant
thereto, and being a residential house, the income of which is chargeable under the head “Income from
house property” (hereafter in this section referred to as the original asset), and the assessee has within a
period of 6[one year before or two years after the date on which the transfer took place purchased], or has
within a period of three years after that date 7[constructed, one residential house in India], then], instead
of the capital gain being charged to income-tax as income of the previous year in which the transfer took
place, it shall be dealt with in accordance with the following provisions of this section, that is to say,—
(i) if the amount of the capital gain 8[is greater than the cost of 9[the residential house] so
purchased or constructed (hereafter in this section referred to as the new asset)], the difference
between the amount of the capital gain and the cost of the new asset shall be charged under section 45
as the income of the previous year; and for the purpose of computing in respect of the new asset any
capital gain arising from its transfer within a period of three years of its purchase or 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 the new asset, the capital
gain shall not be charged under section 45; and for the purpose of computing in respect of the new
asset any capital gain arising from its transfer within a period of three years of its purchase or
construction, as the case may be, the cost shall be reduced by the amount of the capital gain.
of sub-section
of section 56, then, such
sum shall not be deducted from the cost for which the asset was acquired or the written down value or the
fair market value, as the case may be, in computing the cost of acquisition.]
52. [Consideration for transfer in cases of understatement.]—Omitted by the Finance Act, 1987 (11
of 1987), s. 17 (w.e.f. 11988). Earlier amended by Act 5 of 1964, s. 13 (w.e.f. 11964), Act 25 of
1975, s. 9 (w.e.f. 11974) and Act 19 of 1978, s. 9 (w.e.f. 11974).
53. [Exemption of capital gains from a residential house.]—Omitted by the Finance Act, 1992 (18 of
1992), s. 26 (w.e.f. 11993). Earlier substituted by Act 67 of 1984, s. 15 (w.e.f. 11985) and amended
by Act 11 of 1987, s. 18 (w.e.f. 11988).
54. Profit on sale of property used for residence.—2[
if the amount of the capital gain 8[is greater than the cost of 9[the residential house] so
purchased or constructed (hereafter in this section referred to as the new asset)], the difference
between the amount of the capital gain and the cost of the new asset shall be charged under section 45
as the income of the previous year; and for the purpose of computing in respect of the new asset any
capital gain arising from its transfer within a period of three years of its purchase or construction, as
the case may be, the cost shall be nil; or
if the amount of the capital gain is equal to or less than the cost of the new asset, the capital
gain shall not be charged under section 45; and for the purpose of computing in respect of the new
asset any capital gain arising from its transfer within a period of three years of its purchase or
construction, as the case may be, the cost shall be reduced by the amount of the capital gain.