Income Tax Act, 2025
Section 12: Subs. by Act 4 of 1988, s. 2, “Income-tax Officer” (w.e.f. 11988).
12. Subs. by Act 4 of 1988, s. 2, “Income-tax Officer” (w.e.f. 11988).
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(1B) Where on the fulfilment of the conditions specified in sub-section (1A), the cost of the new asset
referred to in that sub-section is taken into account for the purposes of sub-section (1), the assessee shall,
within a period of ninety days from the expiry of the period of three years reckoned from the date of such
deposit, furnish to the 1[Assessing Officer] a certificate from the officer referred to in clause (b) of
sub-section (1A) to the effect that the assessee has not taken any loan or advance on the security of such
deposit during the said period of three years.]
2[(1C) Notwithstanding anything contained in sub-section (1), where the capital gain arises from the
transfer of the original asset, made after the 31st day of March, 1992, in respect of which the assessee had
received any amount by way of advance on or before the 29th day of February, 1992 and had invested or
deposited the whole or any part of such amount in the new asset on or before the later date, then, the
provisions of clauses (a) and (b) of sub-section (1) shall apply in the case of such investment or deposit as
they apply in the case of investment or deposit under that sub-section.]
(2) Where the new asset is transferred, or converted (otherwise than by transfer) into money, within a
period of three years from the date of its acquisition, 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 3[long-term capital assets] of the previous year in which the
new asset is transferred or converted (otherwise than by transfer) into money.]
4[5[Explanation1].—Where the assessee deposits after the 27th day of April, 1978, the 6[whole or any
part of the net consideration in respect] of the original asset in any new asset, being a deposit referred to
in 7[sub-clause (vi) of clause (a)] of Explanation 1 below sub-section (1), and such assessee takes any
loan or advance on the security of such deposit, he shall be deemed to have converted (otherwise than by
transfer) such deposit into money on the date on which such loan or advance is taken.]
8[Explanation 2.—In a case where the original asset is transferred after the 28th day of February,
1983 and the assessee invests the whole or any part of the net consideration in respect of the original asset
in any new asset and such assessee takes any loan or advance on the security of such new asset, he shall
be deemed to have converted (otherwise than by transfer) such new asset on the date on which such loan
or advance is taken.]
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10[(3)] Where the cost of the equity shares referred to in 11[sub-clause (va) of clause (a)] of
Explanation 1 below sub-section (1) is taken into account for the purposes of clause (a) or clause (b) of
sub-section (1) 12***, a deduction with reference to such cost shall not be allowed under section 80CC.
Where on the fulfilment of the conditions specified in sub-section
of
sub-section
to the effect that the assessee has not taken any loan or advance on the security of such
deposit during the said period of three years.]
2[
Notwithstanding anything contained in sub-section
and
of sub-section
shall apply in the case of such investment or deposit as
they apply in the case of investment or deposit under that sub-section.]
Where the new asset is transferred, or converted (otherwise than by transfer) into money, within a
period of three years from the date of its acquisition, 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 3[long-term capital assets] of the previous year in which the
new asset is transferred or converted (otherwise than by transfer) into money.]
4[5[Explanation1].—Where the assessee deposits after the 27th day of April, 1978, the 6[whole or any
part of the net consideration in respect] of the original asset in any new asset, being a deposit referred to
in 7[sub-clause
of clause
of clause
is taken into account for the purposes of clause
or clause
of
sub-section
12***, a deduction with reference to such cost shall not be allowed under section 80CC.