Section 54H - Capital Gains - Extension of time for acquisition or investment

• Section 54H of the Act provides for extension of time for acquiring a new asset or depositing or investing the amount of capital gain as mentioned in section 54, 54B, 54D, 54EC and 54F.

• The extension of time will only be applicable in case of transfer of asset by way of compulsory acquisition under any law and compensation for such acquisition is not awarded on the date of transfer.

• In such cases, the period mentioned in the aforesaid sections for acquiring a new asset or depositing or investing the amount of capital gain shall be reckoned from the date of receipt of compensation on account of compulsory acquisition and not from the date of transfer.