Insertion of new section 54H

Section 21 of the Finance Act, 1991 deals with insertion of new section 54H. Insertion of new section 54H. 21. After section 54G of the Income-tax Act, the following section shall be inserted, with effect from the 1st day of October, 1991, namely:— "54H.

Insertion of new section 54H.

21. After section 54G of the Income-tax Act, the following section shall be inserted, with effect from the 1st day of October, 1991, namely:—

"54H. Extension of time for acquiring new asset or depositing or investing amount of capital gain.—Notwithstanding anything contained in sections 54, 54B, 54D, 54E 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 he reckoned from the date of receipt of such compensation:

Provided that where the compensation in respect of transfer of the original asset by way of compulsory acquisition under any law is received before the 1st day of April, 1991, the aforesaid period or periods, if expired, shall extend up to the 31st day of December, 1991".

[Finance (No.

2) Act, 1991]

© Copyright. Taxmann Publications Pvt. Ltd.

Section 21, The Finance Act, 1991 (Act 49 of 1991).