Income Tax Act, 2025
Section 3: Ins. by Act 14 of 2001, s. 32 (w.e.f. 12002).
3. Ins. by Act 14 of 2001, s. 32 (w.e.f. 12002).
4. Subs. by Act 21 of 2006, s. 14, for “from the transfer of a long-term capital asset” (w.e.f. 12007).
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(ii) “listed securities” shall have the same meaning as in clause (a) of the Explanation to
sub-section (1) of section 112;
(iii) “unit” shall have the meaning assigned to it in clause (b) of the Explanation to
section 115AB.
(2) Where the specified equity shares are sold or otherwise transferred within a period of one year
from the date of their 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 specified equity shares as provided in clause
(a) or, as the case may be, clause (b), of sub-section (1) shall be deemed to be the income chargeable
under the head “Capital gains” relating to long-term capital assets of the previous year in which such
equity shares are sold or otherwise transferred.
1[(3) Where the cost of the specified equity shares has been taken into account for the purposes of
clause (a) or clause (b) of sub-section (1),—
(a) a deduction from the amount of income-tax with reference to such cost shall not be allowed
under section 88 for any assessment year ending before the 1st day of April, 2006;
(b) a deduction from the income with reference to such cost shall not be allowed under section
80C for any assessment year beginning on or after the 1st day of April, 2006.]]
2[54EE. Capital gain not to be charged on investment in units of a specified fund.—(1) Where
the capital gain arises from the transfer of a long-term capital asset (herein in this section referred to as
the original asset) and the assessee has, at any time within a period of six months after the date of such
transfer, invested the whole or any part of capital gains in the long-term specified asset, the capital gain
shall be dealt with in accordance with the following provisions of this section, namely:—
(a) if the cost of the long-term specified asset is not less than the capital gain arising from the
transfer of the original asset, the whole of such capital gain shall not be charged under section 45;
(b) if the cost of the long-term specified asset is less than the capital gain arising from the
transfer of the original asset, so much of the capital gain as bears to the whole of the capital gain the
same proportion as the cost of acquisition of the long-term specified asset bears to the whole of the
capital gain, shall not be charged under section 45:
Provided that the investment made on or after the 1st day of April, 2016, in the long-term specified
asset by an assessee during any financial year does not exceed fifty lakh rupees:
Provided further that the investment made by an assessee in the long-term specified asset, from
capital gains arising from the transfer of one or more original assets, during the financial year in which
the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh
rupees.
(2) Where the long-term specified asset is transferred by the assessee at any time within a period of
three years from the date of its acquisition, the amount of capital gains arising from the transfer of the
original asset not charged under section 45 on the basis of the cost of such long-term specified asset as
provided in clause (a) or, as the case may be, clause (b) of sub-section (1) shall be deemed to be the
income chargeable under the head “Capital gains” relating to long-term capital asset of the previous year
in which the long-term specified asset is transferred.
“listed securities” shall have the same meaning as in clause
of the Explanation to
sub-section
of section 112;
“unit” shall have the meaning assigned to it in clause
of the Explanation to
section 115AB.
Where the specified equity shares are sold or otherwise transferred within a period of one year
from the date of their 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 specified equity shares as provided in clause
or, as the case may be, clause
shall be deemed to be the income chargeable
under the head “Capital gains” relating to long-term capital assets of the previous year in which such
equity shares are sold or otherwise transferred.
1[
Where the cost of the specified equity shares has been taken into account for the purposes of
clause
or clause
of sub-section
a deduction from the amount of income-tax with reference to such cost shall not be allowed
under section 88 for any assessment year ending before the 1st day of April, 2006;
a deduction from the income with reference to such cost shall not be allowed under section
80C for any assessment year beginning on or after the 1st day of April, 2006.]]
2[54EE. Capital gain not to be charged on investment in units of a specified fund.—
Where
the capital gain arises from the transfer of a long-term capital asset (herein in this section referred to as
the original asset) and the assessee has, at any time within a period of six months after the date of such
transfer, invested the whole or any part of capital gains in the long-term specified asset, the capital gain
shall be dealt with in accordance with the following provisions of this section, namely:—
if the cost of the long-term specified asset is not less than the capital gain arising from the
transfer of the original asset, the whole of such capital gain shall not be charged under section 45;
if the cost of the long-term specified asset is less than the capital gain arising from the
transfer of the original asset, so much of the capital gain as bears to the whole of the capital gain the
same proportion as the cost of acquisition of the long-term specified asset bears to the whole of the
capital gain, shall not be charged under section 45:
Provided that the investment made on or after the 1st day of April, 2016, in the long-term specified
asset by an assessee during any financial year does not exceed fifty lakh rupees:
Provided further that the investment made by an assessee in the long-term specified asset, from
capital gains arising from the transfer of one or more original assets, during the financial year in which
the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh
rupees.
Where the long-term specified asset is transferred by the assessee at any time within a period of
three years from the date of its acquisition, the amount of capital gains arising from the transfer of the
original asset not charged under section 45 on the basis of the cost of such long-term specified asset as
provided in clause
or, as the case may be, clause
of sub-section
shall be deemed to be the
income chargeable under the head “Capital gains” relating to long-term capital asset of the previous year
in which the long-term specified asset is transferred.