Section 11 - Amendment of section 54 - Finance Act, 1982

11. Amendment of section 54 In section 54 of the Income-tax Act, with effect from the 1st day of April, 1983, - (a) in sub-section (1), - (i) for the portion beginning with the words Where a capital gain arises from the transfer of a capital asset and ending with the words a house property for the purposes of his own residence, then , the following shall be substituted, namely :- 'Where, in the case of an assessee being an individual the capital gain arises from the transfer of a long-term capital asset to which the provisions of section 53 are not applicable, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head Income from house property (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house, then'; (ii) in clause (i), for the words the house property , the words the residential house shall be substituted; (iii) the following Explanation shall be inserted at the end, namely :- 'Explanation : For the purposes of this sub-section, long-term capital asset means a capital asset which is not a short-term capital asset.'; (b) in sub-section (2), for the words or has within a period of two years after that date constructed, a house property for the purposes of his own residence , the words or has within a period of three years after that date constructed, a residential house shall be substituted.