Section 7. Adjustment for unearned increase in the value of the land

7. Adjustment for unearned increase in the value of the land.— Where the property is constructed on land obtained on lease from the Government, a local authority or any authority referred to in clause (20A) of section 10 of the Income-tax Act, and the Government or any such authority is, under the terms of the lease, entitled to claim and recover a specified part of the unearned increase in the value of the land at the time of the transfer of the property, the value of such property as determined under rule 3 shall be reduced by the amount so liable to be claimed and recovered or by an amount equal to fifty per cent. of the value of the property as so determined, whichever is less, as if the property had been transferred on the valuation date. Explanation. —For the purpose of this rule, "unearned increase" means the difference between the value of such land on the valuation date as determined by the Government or such authority for the purpose of calculating such increase and the amount of the premium paid or payable to the Government or such authority for the lease of the land. 8. Rule 3 not to apply in certain cases.— Nothing contained in rule 3 shall apply,— (a) where, having regard to the facts and circumstances of the case, the Assessing Officer, with the previous approval of the Deputy Commissioner, is of opinion that it is not practicable to apply the provisions of the said rule to such a case; or (b) where the difference between the unbuilt area and the specified area exceeds twenty per cent of the aggregate area; or (c) where the property is constructed on leasehold land and the lease expires within a period not exceeding fifteen years from the relevant valuation date and the deed of lease does not give an option to the lessee for the renewal of the lease, and in any case referred to in clause (a) or clause (b) or clause (c), the value of the property shall be determined in the manner laid down in rule 20. * * 1* * * PART D ASSETS OF BUSINESS 4 5 6 [ [(v)] in the case of an assessee, being a person of Indian origin [or a citizen of India (hereafter in this clause referred to as such person)] who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys[7] [within one year immediately preceding the date of his return and at any time thereafter]: Provided that this exemption shall apply only for a period of seven successive assessment years commencing with the assessment year next following the date on which such person returned to India. 1. Clause (xiv) renumbered as clause (iv) thereof by Act 18 of 1992, s. 92 (w.e.f. 1-4-1993). 2. Added by Act 54 of 1972, s. 5 (w.e.f. 9-9-1972). 3. Clauses (xv) to (xxxii) omitted by Act 18 of 1992, s. 92 (w.e.f. 1-4-1993). 4. Clause (xxxiii) renumbered as clause (v) thereof by s. 92, ibid. (w.e.f. 1-4-1993). 5. Ins. by Act 66 of 1976, s. 27 (w.e.f. 1-4-1977). 6. Ins. by Act 67 of 1984, s. 54 (w.r.e.f. 1-4-1977). 7. Ins. by Act 23 of 1986, s. 40 (w.e.f. 1-4-1987). Explanation[1] [1].—A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India.] 2[ Explanation 2 . —For the removal of doubts, it is hereby declared that moneys standing to the credit of such person in a Non-resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder, on the date of his return to India, shall be deemed to be moneys brought by him into India on that date;] 3[(vi) one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family: Provided that wealth-tax shall not be payable by an assessee in respect of an asset being a plot of land comprising an area of five hundred square metres or less.] 4* * * * * 5* * * * *