Income Tax Act, 2025
Section 1: The proviso ins. by Act 28 of 2016, s. 33 (12017).
1. The proviso ins. by Act 28 of 2016, s. 33 (12017).
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1[Provided that in the case of an eligible start-up, being a technology driven start-up so certified by
the Inter-Ministerial Board of Certification notified by the Central Government in the Official Gazette,
the new asset shall include computers or computer software.]
2[54H. Extension of time for acquiring new asset or depositing or investing amount of capital
gain.—Notwithstanding anything contained in sections 54, 54B, 54D 3*** 4[, 54EC] and 54F, where the
transfer of the original asset is by way of compulsory acquisition under any law and the amount of
compensation awarded for such acquisition is not received by the assessee on the date of such transfer,
the period for acquiring the new asset by the assessee referred to in those sections or, as the case may be,
the period available to the assessee under those sections for depositing or investing the amount of capital
gain in relation to such compensation as is not received on the date of the transfer, shall be reckoned from
the date of receipt of such compensation:
Provided that where the compensation in respect of transfer of the original asset by way of
compulsory acquisition under any law is received before the 1st day of April, 1991, the aforesaid period
or periods, if expired, shall extend up to the 31st day of December, 1991.]
55. Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”.—(1) For the
purposes of 5[sections 48 and 49],—
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7[(b) “cost of any improvement”,—
(1) in relation to a capital asset being goodwill of a business 8[or a right to manufacture,
produce or process any article or thing] 9[or right to carry on any business 10[or profession]] shall
be taken to be nil ; and
(2) in relation to any other capital asset,—]
(i) where the capital asset became the property of the previous owner or the assessee
before the 11[1st day of April, 2001], 12*** means all expenditure of a capital nature incurred
in making any additions or alterations to the capital asset on or after the said date by the
previous owner or the assessee, and
(ii) in any other case, means all expenditure of a capital nature incurred in making any
additions or alterations to the capital asset by the assessee after it became his property, and,
where the capital asset became the property of the assessee by any of the modes specified in
13[sub-section (1) of section 49], by the previous owner,
but does not include any expenditure which is deductible in computing the income chargeable under
the head “Interest on securities”, “Income from house property”, “Profits and gains of business or
profession”, or “Income from other sources”, and the expression “improvement” shall be construed
accordingly.
For the
purposes of 5[sections 48 and 49],—
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7[
“cost of any improvement”,—
in relation to a capital asset being goodwill of a business 8[or a right to manufacture,
produce or process any article or thing] 9[or right to carry on any business 10[or profession]] shall
be taken to be nil ; and
in relation to any other capital asset,—]
where the capital asset became the property of the previous owner or the assessee
before the 11[1st day of April, 2001], 12*** means all expenditure of a capital nature incurred
in making any additions or alterations to the capital asset on or after the said date by the
previous owner or the assessee, and
in any other case, means all expenditure of a capital nature incurred in making any
additions or alterations to the capital asset by the assessee after it became his property, and,
where the capital asset became the property of the assessee by any of the modes specified in
13[sub-section
of section 49], by the previous owner,
but does not include any expenditure which is deductible in computing the income chargeable under
the head “Interest on securities”, “Income from house property”, “Profits and gains of business or
profession”, or “Income from other sources”, and the expression “improvement” shall be construed
accordingly.