Amendment of section 54E

Section 8 of the Finance Act, 1979 deals with amendment of section 54E. Amendment of section 54E. 8. In section 54E of the Income-tax Act,— (1) in sub-section (1),— (a) for the words " full value of the consideration or any part thereof received or accruing as a result of such transfer ", the words " whole or any part of the net consideration " shall be substituted ; The Act was enacted on 10 May 1979.

Amendment of section 54E.

8. In section 54E of the Income-tax Act,—

(1) in sub-section (1),—

(a) for the words " full value of the consideration or any part thereof received or accruing as a result of such transfer ", the words " whole or any part of the net consideration " shall be substituted ;

(b) in clause (a), for the words " full value of the consideration received or accruing", the words "net consideration" shall be substituted ;

(c) in clause (b),—

(i) for the words " full value of the consideration received or accruing ", the words " net consideration " shall be substituted ;

(ii) for the words "full value of such consideration", the words " net consideration " shall be substituted ;

(d) in Explanation 1,—

(i) for the words, brackets and figure ' For the purposes of this sub-section and sub-section (3), " specified asset " means any of the following assets, namely :—', the following shall be substituted, namely :—

' For the purposes of this sub-section, " specified asset" means—

(a) in a case where the original asset is transferred before the 1st day of March, 1979, any of the following assets, namely :—';

(ii) after clause (vi), the following clause shall be inserted, namely :—

"(b) in a case where the original asset is transferred after the 28th day of February, 1979, such National Rural Development Bonds as the Central Government may notify in this behalf in the Official Gazette. ";

(e) in Explanation 3, for the words, brackets, figure and letter " the full value of the consideration or any part thereof in any equity shares referred to clause (va) ", the words, brackets, figure and letters " the whole or any part of the net consideration in any equity shares referred to in sub-clause (va) of clause (a) " shall be substituted ;

(f) in Explanation 4, for the word, brackets and figures " clause (vi) ", the words, brackets, figures and letter " sub-clause (vi) of clause (a) " shall be substituted ;

(g) after Explanation 4, the following Explanation shall be inserted, namely :—

'Explanation 5.—" net consideration ", in relation to the transfer of a capital asset, means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer.' ;

(2) in sub-section (1A),—

(a) for the words " full value of the consideration or any part thereof received or accruing as a result of the transfer", the words " whole or any part of the net consideration in respect " shall be substituted ;

(b) for the words, brackets and figures " referred to in clause (vi)", the words, brackets, figures and letter " referred to in sub-clause (vi) of clause (a) " shall be substituted ;

(c) in clause (a), for the words, brackets and figures " said clause (vi) ", the words, brackets and figures " said sub-clause (vi) " shall be substituted ;

(3) in sub-section (2), in the Explanation,—

(a) for the words " full value of the consideration or any part thereof received or accruing as a result of the transfer", the words " whole or any part of the net consideration in respect " shall be substituted ;

(b) for the word, brackets and figures " clause (vi) ", the words, brackets, figures and letter " sub-clause (vi) of clause (a)" shall be substituted ;

(4) in sub-section (3), in the Explanation,—

(a) in clause (iii), for the word, brackets and figures " clause (vi) ", the words, brackets, figures and letter " sub-clause (vi) of clause (a) " shall be substituted;

(b) after clause (iii), the following clause shall be inserted, namely :—

' (iiia) " specified asset " means—

(a) in relation to any additional compensation or additional consideration received before the 1st day of March, 1979, any of the assets referred to in clause (a) of Explanation 1 below sub-section (1);

(b) in relation to any additional compensation or additional consideration received after the 28th day of February, 1979, the National Rural Development Bonds referred to in clause (b) of Explanation 1 below sub-section (1);';

(5) in sub-section (4), in the Explanation, for the word, brackets and figures "clause (vi) ", the words, brackets, figures and letter "sub clause (vi) of clause (a) " shall be substituted;

(6) in sub-section (5), for the word, brackets and figures " clause (vi)", the words, brackets, figures and letter " sub-clause (vi) of clause (a)" shall be substituted ;

(7) in sub-section (6), for the word, brackets, figure and letter " clause (va) ", the words, brackets, figure and letters " sub-clause (va) of clause (a) " shall be substituted.

[Finance Act, 1979]

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Section 8, The Finance Act, 1979 (Act 21 of 1979).