Section - 53

[OMITTED BY THE FINANCE ACT, 1992, W.E.F. 1-4-1993]

Exemption of capital gains from a residential house.

96 53. [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]

96. Prior to its omission, section 53, as amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985 and the Finance Act, 1987, w.e.f. 1-4-1988, read as under :

‘53. Exemption of capital gains from a residential house.—Notwithstanding anything contained in section 45, where in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head "Income from house property", the capital gain arising from such transfer shall be dealt with in accordance with the following provisions of this section, that is to say,—

( a) in a case where the full value of the consideration received or accruing as a result of the transfer of such capital asset does not exceed two hundred thousand rupees the whole of the capital gain shall not be charged under section 45;

( b) in a case where the full value of such consideration exceeds two hundred thousand rupees, so much of the capital gain as bears to the whole of the capital gain the same proportion as the amount of two hundred thousand rupees bears to such consideration shall not be charged under section 45 :

Provided that nothing contained in this section shall apply to a case where the assessee owns on the date of such transfer any other residential house.

Explanation .—In this section and in sections 54, 54B, 54D, 54E, 54F and 54G, references to capital gain shall be construed as references to the amount of capital gain as computed under clause (a) of sub-section (1) of section 48.’

Section 53

[OMITTED BY THE FINANCE ACT, 1992, W.E.F. 1-4-1993]

Footnotes