Relief from capital gains tax if the sale proceeds of capital asset u/s 54, 54B and 54D of the Income-tax Act, 1961. - Income Tax - 1050/CBDT

INSTRUCTION NO. 1050/CBDT Dated : March 25, 1977 Section(s) Referred: 54 ,54B ,54D Statute: Income - Tax Act, 1961 Section 54, 54B and 54D of the Income-tax Act, 1961 provide for relief from capital gains tax if the sale proceeds of the capital asset as referred to in these sections is invested in purchase of another capital asset of similar nature within a specified period. It has been represented to the Board that in the absence of the decision from the Income-tax Officer expeditiously as to the quantum of capital gain, it becomes difficult for the taxpayers to take a decision regarding the investment in another capital asset within the specified period. 2. The decision whether to invest or not to invest the sale proceeds of the capital asset in the purchase of another asset is to be taken by the taxpayer himself, according to his own calculations of the capital gains. However, the Board have decided that where a specific request for expeditious completion of such assessment is made, the Income-tax Officer should take up the assessment on priority basis and complete it as early as possible.