Tax Planning Series 2 : Capital Gain (Exemption under Capital Gain)



Particulars
Section 54
Section 54F
Eligible taxpayers
Individual and HUF
Individual and HUF
Capital gains eligible for exemption
Long-term
Long-term
Capital gains arising from transfer of
Residential House property
Any long term asset (other than a residential house property) provided on date of transfer taxpayer does not own more than one residential house property (except the new house)
Assets to be acquired for exemption
One residential house property
One residential house property
Time limit for acquiring the new assets
Purchase: within 1 year before or 2 years after date of transfer
Purchase: within 1 year before or within 2 years after date of transfer
Construction: within 3 years after date of transfer
Construction: within 3 years after date of transfer
Exemption Amount
Investment in new assets or capital gain, whichever is lower
Investment in new assets X capital gain/net consideration
Withdrawal of exemption
If new asset is transferred within 3 years of its acquisition
a) If new asset is transferred within 3 years of acquisition,
b) if another residential house is purchased within 2 years of transfer of original asset;
c) if another house is constructed within 3 years of transfer of original asset
Deposit in Capital gains deposit scheme before due date under Sec. 139(1)
Yes
Yes


Particulars
Section 54B
Section 54D
Section 54EC
Section 54EE
Section 54G
Section 54GA
Eligible taxpayers
Individual and HUF
Any person
Any person
Any Person
Any person
Any person
Capital gains eligible for exemption
Short-term or Long-term
Short-term or Long-term
Long-term
Long-term
Short-term or Long-term
Short-term or Long-term
Capital gains arising from transfer of
Agriculture land used by taxpayer or by his parents or HUF for agriculture purposes in last 2 years before its transfer
Compulsory acquisition of land or building forming part of industrial undertaking (which was used for industrial purposes for at least 2 years before its acquisition).
Any long-term capital asset
Any long-term capital asset
Land, building, plant or machinery, in order to shift industrial undertaking from urban area to rural area.
Land, building, plant or machinery, in order to shift industrial undertaking from urban area to SEZ.
Assets to be acquired for exemption
Agricultural land (may be in urban area or rural area)
Land or building for shifting or reestablishing said industrial undertaking
Bond of NHAI or REC, etc.
Units of such fund as may be notified by Central Government to finance start-ups
Land, building, plant or machinery, in order to shift industrial undertaking to rural area.
Land, building, plant or machinery, in order to shift industrial undertaking to SEZ.
Time limit for acquiring the new assets
Within 2 years after date of transfer
Within 3 years from date of receipt of compensation
Within 6 months from date of transfer
Within 6 months after the date of transfer of original asset
within 1 year before or 3 years after date of transfer
Within 1 year before or within 3 years after date of transfer
Exemption Amount
Investment in agricultural land or capital gain, whichever is lower
Investment in new assets or capital gain, whichever is lower
Investment in new assets or capital gains, whichever is lower, however, subject to Rs. 50 lakhs.
Investment in new assets or capital gains, whichever is lower, however, subject to Rs. 50 lakhs.
Investment in new assets or capital gain, whichever is lower
Investment in new assets or capital gain, whichever is lower
Withdrawal of exemption
If new asset is transferred within 3 years of its acquisition
If new asset is transferred within 3 years of its acquisition
If new asset is transferred or it is converted into money or a loan is taken on its security
If new asset is transferred within a period of 3 years from the date of its acquisition.
If new asset is transferred within 3 years of acquisition
If new asset is transferred within 3 years of acquisition
within 3 years of its acquisition
Note: 
Where assessee takes loans or advance on security of such specified asset, he shall be deemed to have transferred such asset on the date on which such loan or advance is taken.
Deposit in Capital gains deposit scheme before due date under Sec. 139(1)
Yes
Yes
No
No
Yes
Yes


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