Income Tax Act, 2025
Section 9: Subs. by Act 14 of 1982, s. 11, for “the house property” (w.e.f. 11983).
9. Subs. by Act 14 of 1982, s. 11, for “the house property” (w.e.f. 11983).
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1[Provided that where the amount of the capital gain does not exceed two crore rupees, the
assessee, may at his option, purchase or construct two residential houses in India, and where such an
option has been exercised,––
(a) the provisions of this sub-section shall have effect as if for the words “one residential
house in India”, the words “two residential houses in India” had been substituted;
(b) any reference in this sub-section and sub-section (2) to “new asset” shall be construed as a
reference to the two residential houses in India: Provided further that where during any
assessment year, the assessee has exercised the option referred to in the first proviso, he shall not
be subsequently entitled to exercise the option for the same or any other assessment year.]
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3[(2) The amount of the capital gain 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 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 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 not so utilised shall be charged under section 45 as the income of the previous
year in which the period of three 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.
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54A. [Relief of tax on capital gains in certain cases.]—Omitted by the Finance (No. 2) Act, 1971 (32
of 1971), s. 11 (w.e.f. 11972). Earlier inserted by Act 10 of 1965, s. 17 (11965). Again inserted by
Act 4 of 1988, s. 16 (w.e.f. 11988) and omitted by Act 3 of 1989, s. 95 (w.e.f. 11989).
5[54B. Capital gain on transfer of land used for agricultural purposes not to be charged in
certain cases.—6[(1)] 7[Subject to the provisions of sub-section (2), where the capital gain arises] from
the provisions of this sub-section shall have effect as if for the words “one residential
house in India”, the words “two residential houses in India” had been substituted;
any reference in this sub-section and sub-section
to “new asset” shall be construed as a
reference to the two residential houses in India: Provided further that where during any
assessment year, the assessee has exercised the option referred to in the first proviso, he shall not
be subsequently entitled to exercise the option for the same or any other assessment year.]
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3[
The amount of the capital gain 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 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 45 as the income of the previous
year in which the period of three 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* * * * *
54A. [Relief of tax on capital gains in certain cases.]—Omitted by the Finance (No. 2) Act, 1971 (32
of 1971), s. 11 (w.e.f. 11972). Earlier inserted by Act 10 of 1965, s. 17