Income Tax Act, 2025
Section 3: Ins. by Act 25 of 2014, s. 17 (w.e.f. 12015).
3. Ins. by Act 25 of 2014, s. 17 (w.e.f. 12015).
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1[(c) where in the assessment for any year, the capital gain arising from the transfer of a capital
asset is computed by taking the compensation or consideration referred to in clause (a) or, as the case
may be, enhanced compensation or consideration referred to in clause (b), and subsequently such
compensation or consideration is reduced by any court, Tribunal or other authority, such assessed
capital gain of that year shall be recomputed by taking the compensation or consideration as so
reduced by such court, Tribunal or other authority to be the full value of the consideration.]
Explanation.—For the purposes of this sub-section,—
(i) in relation to the amount referred to in clause (b), the cost of acquisition and the cost of
improvement shall be taken to be nil;
(ii) the provisions of this sub-section shall apply also in a case where the transfer took place
prior to the 1st day of April, 1988;
(iii) where by reason of the death of the person who made the transfer, or for any other
reason, the enhanced compensation or consideration is received by any other person, the amount
referred to in clause (b) shall be deemed to be the income, chargeable to tax under the head
“Capital gains”, of such other person.]
2[(5A) Notwithstanding anything contained in sub-section (1), where the capital gain arises to an
assessee, being an individual or a Hindu undivided family, from the transfer of a capital asset, being land
or building or both, under a specified agreement, the capital gains shall be chargeable to income-tax as
income of the previous year in which the certificate of completion for the whole or part of the project is
issued by the competent authority; and for the purposes of section 48, the stamp duty value, on the date of
issue of the said certificate, of his share, being land or building or both in the project, as increased by the
consideration received in cash, if any, shall be deemed to be the full value of the consideration received or
accruing as a result of the transfer of the capital asset:
Provided that the provisions of this sub-section shall not apply where the assessee transfers his share in
the project on or before the date of issue of the said certificate of completion, and the capital gains shall be
deemed to be the income of the previous year in which such transfer takes place and the provisions of this
Act, other than the provisions of this sub-section, shall apply for the purpose of determination of full value
of consideration received or accruing as a result of such transfer.
Explanation.—For the purposes of this sub-section, the expression—
(i) “competent authority” means the authority empowered to approve the building plan by or
under any law for the time being in force;
(ii) “specified agreement” means a registered agreement in which a person owning land or
building or both, agrees to allow another person to develop a real estate project on such land or
building or both, in consideration of a share, being land or building or both in such project, whether
with or without payment of part of the consideration in cash;
(iii) “stamp duty value” means the value adopted or assessed or assessable by any authority of the
Government for the purpose of payment of stamp duty in respect of an immovable property being land
or building or both.’.]
3[(6) Notwithstanding anything contained in sub-section (1), the difference between the repurchase
price of the units referred to in sub-section (2) of section 80CCB and the capital value of such units shall
be deemed to be the capital gains arising to the assessee in the previous year in which such repurchase
takes place or the plan referred to in that section is terminated and shall be taxed accordingly.
Explanation.—For the purposes of this sub-section, “capital value of such units” means any
amount invested by the assessee in the units referred to in sub-section (2) of section 80CCB.]
where in the assessment for any year, the capital gain arising from the transfer of a capital
asset is computed by taking the compensation or consideration referred to in clause
or, as the case
may be, enhanced compensation or consideration referred to in clause
in relation to the amount referred to in clause
the provisions of this sub-section shall apply also in a case where the transfer took place
prior to the 1st day of April, 1988;
where by reason of the death of the person who made the transfer, or for any other
reason, the enhanced compensation or consideration is received by any other person, the amount
referred to in clause
shall be deemed to be the income, chargeable to tax under the head
“Capital gains”, of such other person.]
2[
Notwithstanding anything contained in sub-section
“competent authority” means the authority empowered to approve the building plan by or
under any law for the time being in force;
“specified agreement” means a registered agreement in which a person owning land or
building or both, agrees to allow another person to develop a real estate project on such land or
building or both, in consideration of a share, being land or building or both in such project, whether
with or without payment of part of the consideration in cash;
“stamp duty value” means the value adopted or assessed or assessable by any authority of the
Government for the purpose of payment of stamp duty in respect of an immovable property being land
or building or both.’.]
3[
Notwithstanding anything contained in sub-section
of section 80CCB and the capital value of such units shall
be deemed to be the capital gains arising to the assessee in the previous year in which such repurchase
takes place or the plan referred to in that section is terminated and shall be taxed accordingly.
Explanation.—For the purposes of this sub-section, “capital value of such units” means any
amount invested by the assessee in the units referred to in sub-section
of section 80CCB.]