Income Tax Act, 2025
Section 6: Clause (i) omitted by Act 11 of 1987, s. 23 (w.e.f. 11988).
6. Clause (i) omitted by Act 11 of 1987, s. 23 (w.e.f. 11988).
292
1*** “net consideration”, in relation to the transfer of a capital asset, means the full value of the
consideration received or accruing as a result of the transfer of the capital asset as reduced by any
expenditure incurred wholly and exclusively in connection with such transfer.
(2) Where the assessee purchases, within the period of 2[two years] after the date of the transfer of the
original asset, or constructs, within the period of three years after such date, any residential house, the
income from which is chargeable under the head “Income from house property”, other than the new asset,
the amount of capital gain arising from the transfer of the original asset not charged under section 45 on
the basis of the cost of such new asset as provided in clause (a), or, as the case may be, clause (b), of subsection (1), shall be deemed to be income chargeable under the head “Capital gains” relating to long-term
capital assets of the previous year in which such residential house is purchased or constructed.
(3) Where the new asset is transferred within a period of three years from the date of its purchase or,
as the case may be, its construction, the amount of capital gain arising from the transfer of the original
asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a) or,
as the case may be, clause (b), of sub-section (1) shall be deemed to be income chargeable under the head
“Capital gains” relating to long-term capital assets of the previous year in which such new asset is
transferred.]
3[(4) The amount of the net consideration which is not appropriated by the assessee towards the
purchase of the new asset made within one year before the date on which the transfer of the original asset
took place, or which is not utilised by him for the purchase or construction 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 schemewhich 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 or construction 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 or construction of the new asset within the period specified in sub-section (1), then,—
(i) the amount by which—
(a) the amount of capital gain arising from the transfer of the original asset not charged
under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case
may be, clause (b) of sub-section (1), exceeds
(b) the amount that would not have been so charged had the amount actually utilised by the
assessee for the purchase or construction of the new asset within the period specified in
sub-section (1) been the cost of the new asset,
shall be charged under section 45 as income of the previous year in which the period of three years from
the date of the transfer of the original asset expires; and
omitted by Act 11 of 1987, s. 23 (w.e.f. 11988).
292
1*** “net consideration”, in relation to the transfer of a capital asset, means the full value of the
consideration received or accruing as a result of the transfer of the capital asset as reduced by any
expenditure incurred wholly and exclusively in connection with such transfer.
Where the assessee purchases, within the period of 2[two years] after the date of the transfer of the
original asset, or constructs, within the period of three years after such date, any residential house, the
income from which is chargeable under the head “Income from house property”, other than the new asset,
the amount of capital gain arising from the transfer of the original asset not charged under section 45 on
the basis of the cost of such new asset as provided in clause
Where the new asset is transferred within a period of three years from the date of its purchase or,
as the case may be, its construction, the amount of capital gain arising from the transfer of the original
asset not charged under section 45 on the basis of the cost of such new asset as provided in clause
or,
as the case may be, clause
shall be deemed to be income chargeable under the head
“Capital gains” relating to long-term capital assets of the previous year in which such new asset is
transferred.]
3[
The amount of the net consideration which is not appropriated by the assessee towards the
purchase of the new asset made within one year before the date on which the transfer of the original asset
took place, or which is not utilised by him for the purchase or construction 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 schemewhich 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 by which—
the amount of capital gain arising from the transfer of the original asset not charged
under section 45 on the basis of the cost of the new asset as provided in clause
or, as the case
may be, clause
of sub-section
the amount that would not have been so charged had the amount actually utilised by the
assessee for the purchase or construction of the new asset within the period specified in
sub-section
been the cost of the new asset,
shall be charged under section 45 as income of the previous year in which the period of three years from
the date of the transfer of the original asset expires; and