04 June 2009
IF ANY NOTIFICATION OR CIRCULARS ARE AVAILABLE FOR TAX EXEMPTION FROM CAPITAL GAIN ON LAND & BUILDING BY COMPULSORY ACQUISITION BY THE GOVERNMENT BY ANY LAW
04 June 2009
Section 54D provides for exemption in respect of both long-term and short-term capital gains arising from the transfer of land and buildings provided the following conditions are satisfied: (i) The transfer is by way of compulsory acquisition of the asset (ii) The asset transferred is land or buildings forming part of an industrial undertaking belonging to the assessee (iii) Such land or building were in use by the assessee for the purpose of the business of the industrial undertaking for at least two years immediately preceding the date of transfer (iv) Capital gain on a building will be a short-term capital gain since the same is a depreciable asset as it is being used for business while land will be a long-term capital gain since it is not a depreciable asset. (v) The assessee purchases/constructs other land and buildings within a period of 3 years after the date of transfer for the purpose of shifting or re-establishing the said industrial undertaking or setting up another industrial undertaking.
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