Amendment of section 54
Amendment of section 54
19. In section 54 of the Income-tax Act, with effect from the 1st day of April; 1988,—
(a) in sub-section (1),—
(i) for the words "Where, in the case of an assessee being an individual", the words, brackets and figure "Subject to the provisions of sub-section (2), where, in the case of an assesses being an individual or a Hindu, undivided family" shall be substituted;
(ii) the Explanation at the end shall be omitted;
(b) for sub-section (2), the following sub-section shall be substituted, namely:—
(2) The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new, asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1). of section 139] in an account in any such bank or institution, as may be specified in, and utilised in accordance with any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new set together with the amount so deposited shall be deemed to be the cost of the new asset:
Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction the new asset within the period specified in sub-section (1), then,—
(i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and
(ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid.
Explanation.—Where any amount becomes chargeable under section 45 in accordance with the proviso to this subsection, then,—
(a) for the purposes of the deductions to be made under clause (b) of sub-section (1) of section 48, the initial . deduction of ten thousand rupees under sub-section (2) of that section shall not be admissible; and
(b) nothing contained in section 53 shall apply in relation to such amount.".
[Finance Act, 1987]