Neethi V. Kannanth
Quick Summary
Section 54G provides for an exemption from capital gain arising on transfer of capital asset, being plant or machinery or land or building or any rights in building or land used for the purpose of business in an industrial undertaking situated in an urban area. This article explains everything yo
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FAQ :
Section 54G provides an exemption from capital gains tax arising from the transfer of capital assets like plant, machinery, land, or buildings used for business in an industrial undertaking located in an urban area.
This exemption is applicable to all persons who meet the specified conditions.
Both short-term and long-term capital gains arising from the transfer of eligible assets are eligible for exemption under Section 54G.
You must reinvest the capital gains by purchasing new machinery, acquiring land or buildings, or shifting the original industrial undertaking to a rural area within one year before or three years after the transfer date.
The exemption amount is the lower of the amount invested in the new assets for relocation or the amount of capital gain.
If the newly acquired capital assets are transferred within three years of investment, the exemption previously allowed under Section 54G will be withdrawn.
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