Income Tax Act, 2025
Section 3: The words “or deposited” omitted by Act 26 of 1988, s. 32 (w.e.f. 11989).
3. The words “or deposited” omitted by Act 26 of 1988, s. 32 (w.e.f. 11989).
4. The words, brackets, figure and letter “or in an account referred to in clause (4A)” omitted by s. 32, ibid. (w.e.f. 1
1989).
5. The words “or such deposit in the account aforesaid” omitted by s. 32, ibid. (w.e.f. 11989).
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(b) if the cost of the new asset is less than the net consideration in respect 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 new asset bears to the net consideration shall not be charged under section 45.
Explanation.—For the purposes of this sub-section,—
(i) “cost”, in relation to any new asset, being a deposit 1*** referred to in sub-clause (iii), or
specified under sub-clause (v), of clause (f) of section 115C, means the amount of such deposit;
(ii) “net consideration”, in relation to the transfer of the original asset, means the full value of the
consideration received or accruing as a result of the transfer of such asset as reduced by any
expenditure incurred wholly and exclusively in connection with such transfer.
(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 capital assets other than short-term capital assets of the
previous year in which the new asset is transferred or converted (otherwise than by transfer) into money.
115G. Return of income not to be filed in certain cases. It shall not be necessary for a non-resident
Indian to furnish under sub-section (1) of section 139 a return of his income if—
(a) his total income in respect of which he is assessable under this Act during the previous year
consisted only of investment income or income by way of long-term capital gains or both; and
(b) the tax deductible at source under the provisions of Chapter XVIIB has been deducted from
such income.
115H. Benefit under Chapter to be available in certain cases even after the assessee becomes
resident.—Where a person, who is a non-resident Indian in any previous year, becomes assessable as
resident in India in respect of the total income of any subsequent year, he may furnish to the 2[Assessing
Officer] a declaration in writing along with his return of income under section 139 for the assessment year
for which he is so assessable, to the effect that the provisions of this Chapter shall continue to apply to
him in relation to the investment income derived from any foreign exchange asset being an asset of the
nature referred to in sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) of clause (f) of
section 115C; and if he does so, the provisions of this Chapter shall continue to apply to him in relation to
such income for that assessment year and for every subsequent assessment year until the transfer or
conversion (otherwise than by transfer) into money of such assets.
115-I. Chapter not to apply if the assessee so chooses.—A non-resident Indian may elect not to be
governed by the provisions of this Chapter for any assessment year by furnishing his return of income for
that assessment year under section 139 declaring therein that the provisions of this Chapter shall not apply
to him for that assessment year and if he does so, the provisions of this Chapter shall not apply to him for
that assessment year and his total income for that assessment year shall be computed and tax on such total
income shall be charged in accordance with the other provisions of this Act.]
1. The words, brackets, figures and letter “referred to in clause (4A) of section 10 or” omitted by Act 26 of 1988, s. 32
(w.e.f. 11989).
if the cost of the new asset is less than the net consideration in respect 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 new asset bears to the net consideration shall not be charged under section 45.
Explanation.—For the purposes of this sub-section,—
“cost”, in relation to any new asset, being a deposit 1*** referred to in sub-clause
of section 115C, means the amount of such deposit;
“net consideration”, in relation to the transfer of the original asset, means the full value of the
consideration received or accruing as a result of the transfer of such asset as reduced by any
expenditure incurred wholly and exclusively in connection with such transfer.
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 capital assets other than short-term capital assets of the
previous year in which the new asset is transferred or converted (otherwise than by transfer) into money.
115G. Return of income not to be filed in certain cases. It shall not be necessary for a non-resident
Indian to furnish under sub-section
of section 139 a return of his income if—
his total income in respect of which he is assessable under this Act during the previous year
consisted only of investment income or income by way of long-term capital gains or both; and
the tax deductible at source under the provisions of Chapter XVIIB has been deducted from
such income.
115H. Benefit under Chapter to be available in certain cases even after the assessee becomes
resident.—Where a person, who is a non-resident Indian in any previous year, becomes assessable as
resident in India in respect of the total income of any subsequent year, he may furnish to the 2[Assessing
Officer] a declaration in writing along with his return of income under section 139 for the assessment year
for which he is so assessable, to the effect that the provisions of this Chapter shall continue to apply to
him in relation to the investment income derived from any foreign exchange asset being an asset of the
nature referred to in sub-clause
or sub-clause
or sub-clause
or sub-clause
of clause
of
section 115C; and if he does so, the provisions of this Chapter shall continue to apply to him in relation to
such income for that assessment year and for every subsequent assessment year until the transfer or
conversion (otherwise than by transfer) into money of such assets.
115-I. Chapter not to apply if the assessee so chooses.—A non-resident Indian may elect not to be
governed by the provisions of this Chapter for any assessment year by furnishing his return of income for
that assessment year under section 139 declaring therein that the provisions of this Chapter shall not apply
to him for that assessment year and if he does so, the provisions of this Chapter shall not apply to him for
that assessment year and his total income for that assessment year shall be computed and tax on such total
income shall be charged in accordance with the other provisions of this Act.]
1. The words, brackets, figures and letter “referred to in clause
of section 10 or” omitted by Act 26 of 1988, s. 32
(w.e.f. 11989).