Income Tax Act, 2025
Section 5: Ins. by Act 19 of 1970, s. 11 (w.e.f. 11970).
5. Ins. by Act 19 of 1970, s. 11 (w.e.f. 11970).
6. Section 54B renumbered as sub-section (1) thereof by Act 19 of 1978, s. 11 (w.e.f. 11974).
7. Subs. by Act 11 of 1987, s. 20, for “Where the capital gain arises” (w.e.f. 11988).
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the transfer of a capital asset being land which, in the two years immediately preceding the date on which
the transfer took place, was being used by 1[the assessee being an individual or his parent, or a Hindu
undivided family] for agricultural purposes 2[(hereinafter referred to as the original asset)], and the
assessee has, within a period of two years after that date, purchased any other land for being used for
agricultural purposes, 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 is greater than the cost of the land so purchased (hereinafter
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, 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, the cost
shall be reduced, by the amount of the capital gain.]
3[(2) The amount of the capital gain which is not utilised by the assessee for the purchase of the new
asset before the date of furnishing the return of income under section 139, shall be deposited by him
before furnishing such return [such deposit being made in any case not later than the due date applicable
in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an
account in any such bank or institution as may be specified in, and utilised in accordance with, any
scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf
and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1),
the amount, if any, already utilised by the assessee for the purchase of the new asset together with the
amount 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 utilised wholly or partly for the
purchase of the new asset within the period specified in sub-section (1), then,—
(i) the amount not so utilised shall be charged under section 45as the income of the previous year
in which the period of two years from the date of the transfer of the original asset expires; and
(ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme
aforesaid.
4* * * * *
54C. [Capital gain on transfer of jewellery held for personal use not to be charged in certain cases.]—
Omitted by the Finance Act, 1976 (66 of 1976) (w.e.f. 11976). Earlier inserted by Act 16 of 1972, s. 9
(w.e.f. 11973).
1. Subs. by Act 23 of 2012, s. 18, for “the assessee or a parent of his” (w.e.f. 12013).
thereof by Act 19 of 1978, s. 11 (w.e.f. 11974).
7. Subs. by Act 11 of 1987, s. 20, for “Where the capital gain arises” (w.e.f. 11988).
280
the transfer of a capital asset being land which, in the two years immediately preceding the date on which
the transfer took place, was being used by 1[the assessee being an individual or his parent, or a Hindu
undivided family] for agricultural purposes 2[(hereinafter referred to as the original asset)], and the
assessee has, within a period of two years after that date, purchased any other land for being used for
agricultural purposes, 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,—
if the amount of the capital gain is greater than the cost of the land so purchased (hereinafter
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, 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, the cost
shall be reduced, by the amount of the capital gain.]
3[
The amount of the capital gain which is not utilised by the assessee for the purchase of the new
asset before the date of furnishing the return of income under section 139, shall be deposited by him
before furnishing such return [such deposit being made in any case not later than the due date applicable
in the case of the assessee for furnishing the return of income under sub-section
of section 139] in an
account in any such bank or institution as may be specified in, and utilised in accordance with, any
scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf
and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section
the amount not so utilised shall be charged under section 45as the income of the previous year
in which the period of two years from the date of the transfer of the original asset expires; and
the assessee shall be entitled to withdraw such amount in accordance with the scheme
aforesaid.
4* * * * *
54C. [Capital gain on transfer of jewellery held for personal use not to be charged in certain cases.]—
Omitted by the Finance Act, 1976 (66 of 1976) (w.e.f. 11976). Earlier inserted by Act 16 of 1972, s. 9
(w.e.f. 11973).
1. Subs. by Act 23 of 2012, s. 18, for “the assessee or a parent of his” (w.e.f. 12013).