by
Section 54 |
Section 54B |
Section 54D |
||
| 1) | Allowability | Exemption is Allowed provided the Assessee has Long Term Capital Gains on transfer of Residential House | Exemption is Allowed provided the Assessee has Capital Gains on transfer of Agricultural Land | Exemption is Allowed provided the Assessee has Capital Gains on Compulsory Acquisition of Industrial Undertaking. |
| 2) | Allowed To | Individual/HUF | Individual/HUF | All Assessees |
| 3) | Conditions to be Satisfied | a.) The Assessee Should have purchased one Residential in India house either one year before or two years after the date of transfer OR The Assessee should Construct one residential house in India within three years after the date of transfer | a.) The Assessee Should have purchased one or more Agricultural Land within a period of two years after the date of transfer | a.) The Assessee Should have Invested the Amount in Land and Building for the purpose of Industrial Undertaking within a period of Three years after the date of Payment by Government. |
| b) The Assesee Should either Purchase or Construct only one House within the specified time period. | b) The Assesee or his parentsor HUF should have been using Agricultural Land so transferred for a period of atleast 2 years at the time of Sale | b) The Assessee should have been using such Land and Building for the purpose ofIndustrial Undetaking for a period of atleast 2 years at the time of Acquisition. | ||
| c.) The House so purchased or constructed should not be transferred for a period of at least Three Years | c.) The Land so purchased should not be transferred for a period of at least Three Years | c.) The Land and Building so purchased should not be transferred for a period of atleast Three Years | ||
| 4) | Amount of Exemption | Amount of Exemption shall be equal to Amount Invested(Subject to Capital Gains) | Amount of Exemption shall be equal to Amount Invested(Subject to Capital Gains) | Amount of Exemption shall be equal to Amount Invested(Subject to Capital Gains) |
| 5) | Capital Gain Accounts Scheme,1988 Applicability* | Applicable | Applicable | Applicable |
| 6) | Consequences | If Assessee Violates Condition c) Stated above Exemption earlier allowed shall be withdrawn in special manner i.e. While Computing Capital Gains, Cost of Acquisition shall be reduced by the amount of exemption earlier taken. | If Assessee Violates Condition c) Stated above Exemption earlier allowed shall be withdrawn in special manner i.e. While Computing Capital Gains, Cost of Acquisition shall be reduced by the amount of exemption earlier taken. | If Assessee Violates Condition c) Stated above Exemption earlier allowed shall be withdrawn in special manner i.e. While Computing Capital Gains, Cost of Acquisition shall be reduced by the amount of exemption earlier taken. |
Section 54EC |
Section 54F |
Section 54GB |
Section 54G / Section 54GA |
||
| 1) | Allowability | Exemption is Allowed provided the Assessee has long term Capital Gains on transfer of any long term Capital Asset (being land or building or both wef A.y 2019-20) | Exemption is Allowed provided the Assessee has Long Term Capital Gains on transfer of any Capital Asset except Residential House | Exemption is Allowed provided the Assessee has Long Term Capital Gains on transfer of any Residential House or Plot. | Exemption is Allowed provided the Assessee has Capital Gains in connection with shifting of Industrial Undertaking from Urban area to any other area. |
| 2 | Allowed To | All Assessees | Individual/ HUF | Individual/ HUF | All Assessees |
| 3 | Conditions to be Satisfied | a) The Assessee Should have Invested the Amount in Long Term Specified Asset within a period of Six Months from the date of transfer. However from the Assessment Year 2018-19 investment in any bonds redeemable after three years shall be eligible for exemption. Wef A.y 2019-20 investment in any bonds redeemable after five years shall be eligible for exemption | a) The Assessee Should have purchased one residential house property in India either one year before or two years after the date of transfer OR The Assessee should Construct one residential house property in India within three years after the date of transfer | a) The Assessee Should have Incorporated a new company before due date of filling of Return of Income & Should have subscribed to more than 50% of the Shares of the Company.
b) This provision is not applicable to any transfer of residential property made after the 31st day of March, 2017. however for investment in eligible start-up the transfer can take place upto 31.03.2018 |
a) The Assessee Should have Invested the Amount in Land and Building or P&M ( Not Furniture & Fixture for the purpose of Industrial Undertaking either one year before or three years after the date of transfer |
| b.) The Assesee is not allowed to Convert the Security into Cash i.e. The Assessee is not allowed to take Loan on the basis of security | b.) The Assesee Should either Purchase or Construct only one House within the specified time period. Also, the Assessee should not have more than one house in his name at the time of transfer of original asset income from which is charged under the head Income from house property | c.) The Assesee Should Invest the Amount in Plant & Machinery within one Year from the date of Purchase of Shares. | Exemption shall also be allowed for shifting expenses | ||
| c.) The Asset so purchased should not be transferred before 3 years (5 years if the investment in specified asset is made on or after 01.04.2018 ) | c.) The House so purchased or constructed should not be transferred for a period of atleast Three Years d) if the assessee purchases, within the period of two years after the date of the transfer of the original asset, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head “Income from house property”, other than the new asset, |
d.) The shares and Plant & Machinery so purchased should not be transferred for a period of at least Five Years. | c.) The Asset so purchased should not be transferred for a period of atleast three years. | ||
| 4 | Amount of Exemption | Amount of Exemption shall be equal to Amount Invested (Subject to Capital Gains) | Amount of Exemption shall be equal to Capital Gains ÷ Net Consideration × Amount of Investment | Amount of Exemption shall be equal to Capital Gains ÷ Net Consideration × Amount of Investment (Subject to Capital Gains) | Amount of Exemption shall be equal to Amount Invested in Land & Building and Plant & Machinery (Not Furniture & Fixture) (Subject to Capital Gains) |
| 5 | Capital Gain Accounts Scheme,1988 Aplicability* | Not Applicable | Applicable | Not Applicable. However If Assessee fails to make investment in P&M within one year then amount shall be deposited into Specified Bank Account | Applicable |
| 6 | Consequences | If Assessee Violates Condition c) Stated above Exemption earlier allowed shall be considered to be Long Term Capital Gain of the Year in which the Asset has been transferred. | If Assessee Violates Condition c & d Stated above Exemption earlier allowed shall be considered to be Long Term Capital Gain of the Year in which the Asset has been transferred. | If Assessee Violates Condition d.) stated above Exemption earlier allowed shall be withdrawn and shall be deemed to be the income of the assessee chargeable under the head “Capital gains” of the previous year in which such equity shares or such new asset are sold or otherwise transferred, | If Assessee Violates Condition c) Stated above Exemption earlier allowed shall be withdrawn in special manner i.e. While Computing Capital Gains, Cost of Acquisition shall be reduced by the amount of exemption earlier taken. |
2 thoughts on “Exemptions on Capital Gains U/S 54, 54B, 54D, 54EC, 54F”