§ 89
Chapter IV — Computation Of Total Income
Irrespective of anything contained in sections 82, 83, 84, 85 and 86,—
Income-tax Act, 2025
In cases where an asset is acquired compulsorily by law, the time period for reinvesting the capital gain is calculated from the date the compensation is received, not the date of transfer. This rule applies even if other sections have different timelines.
- The compensation must be for the original asset mentioned in the other sections.
📜 Official text of the section +
89. Irrespective of anything contained in sections 82, 83, 84, 85 and 86,—
( a) if the transfer of the original asset mentioned in those sections is by way
of compulsory acquisition under any law; and
( b) if the compensation awarded for such acquisition is not received by the
assessee on the date of transfer, then, the period available to him under
those sections for acquisition of the new asset or investment or deposit
of capital gain in specified bank or institution shall be reckoned from
the date of receipt of compensation.
Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.