Extension Of Time Limit For Acquiring New Asset, When Enhanced Compensation Is Paid

(a) Initial Compensation: If initial compensation is received in parts, then the entire initial compensation is taxable in the year in which a part is first received. Time limit for acquiring the new asset u/s 54, 54B, 54D, 54EC and 54F shall be determined on the basis of dates of receipt of different parts of initial compensation.

(b) Enhanced Compensation: If any enhanced compensation is received, it is taxable in the year in which such compensation is received and for acquiring the new asset u/s 54, 54B, 54D, 54EC and 54F, the time limit shall be determined from the date of receipt of additional (enhanced) compensation.

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