Section-89: Extension of time for acquiring new asset or depositing or investing amount of capital gains.

Section-89 : Extension of time for acquiring new asset or depositing or investing amount of capital gains.

Section-89 provides for scenarios for extension of time for acquiring new assets or depositing or investing amounts, with respect to capital gains.Learn to understand the section-89 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-89 as per act

Irrespective of anything contained in sections 82, 83, 84, 85 and 86,––

if the transfer of the original asset mentioned in those sections is by way of compulsory acquisition under any law; and
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.