Section 54H: Extension Of Time For Acquiring New Asset Or Depositing Or Investing Amount Of Capital Gain
Notwithstanding anything contained in sections 54, 54B, 54D, 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 :
Therefore, in the case of transfer by way of compulsory acquisition by the government, the period of one year before or two years or three years for acquiring the new asset shall commence from the date of receipt of the compensation and not from the date of acquisition. Similarly, deposit under the Capital Gains Accounts Scheme may be made in the previous year in which the compensation is received or till the due date of filling the return of income of the previous year in which the compensation is received.
Capital Gain Account Scheme
• Capital Gains Account Scheme is a scheme to facilitate the taxpayer.
• If taxpayer could not invest the capital gains
– to acquire new asset
– before due date of furnishing of return of income
– then the capital gains amount can be deposited
– before due date for furnishing of return of income
– in a special bank account
– maintained in any branch of a nationalized bank
• Interest earned on Capital Gains Account is chargeable to tax under the head “Income from Other Sources”
• Interest earned on Capital Gain Account is charged to tax in the year it accrues and is credited to the capital gain account of the assessee.