Income Tax
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Exemption of capital gains from a residential house
12[Exemption of capital gains from a residential house.
53. Notwithstanding anything contained in section-45, where in the case of an assessee being an individual 13[or a Hindu undivided family], the capital gain arises from the transfer of a 14[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.]
13[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.]
12. Substituted for the following by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985 :
"53. Capital gains exempt from tax.—Notwithstanding anything contained in section-45, where a capital gain arises from the transfer of one or more capital assets, being buildings or lands appurtenant thereto, the income of which is chargeable under the head "Income from house property and the full aggregate value of the consideration for which the transfer is made does not exceed twenty-five thousand rupees, the capital gain shall not be included in the total income of the assessee:
Provided that this section shall not apply in any case where the aggregate of the fair market values of all capital assets, being buildings or lands appurtenant thereto the income of which is chargeable under the head "Income from house property", owned by the assessee immediately before the transfer aforesaid is made, exceeds the sum of rupees fifty thousand.'
13. Inserted by the Finance Act, 1987, w.e.f. 1-4-1988.
14. Substituted for "capital asset (other than short-term capital asset)", by the Finance Act, 1987.
[AS AMENDED BY THE DIRECT TAX LAWS (AMENDMENT) ACT, 1987]
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