CG Exemption u/s 54, 54B, 54D, 54EC, 54F, 54G, 54GA TABLE


N.Naveena Maheswara Rao (Assistant manager for accounts)     04 September 2009

N.Naveena Maheswara Rao
Assistant manager for accounts 
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 The following table is all about capital gain exemption, under what section you can avail it, Conditions to be satisfied, quantum of exemption. You can calculate capital gain tax exemption easily with the help of following table.

Under Section

Allowed Assessee

Conditions to be satisfied

Quantum of exemption

54

Individual/HUF

1. Transfer should be of a residential house

income of which is chargeable under thehead ‘Income from house property’.

2  It must be a long-term capital asset.

3. Purchase of another residential house should be within one year before or 2years after, or construction should be within three years after the date of transfer.

Actual amount invested in   new   asset   or  the capital gain whichever is less.

54B

Individual

1 Transfer should be of agricultural land.

 

2. It must have been used in the 2 years i mmediately   preceding   the   date   oftransfer for agricultural purposes eitherby the assessee or his parent.

3 Another agricultural  land  should  be purchased within 2 years after the date of transfer.

—do—

 

54D

Any assessee which is an industrial undertaking

1 There must be compulsory acquisition.

2.  The  property  compulsorily  acquired should be land and building forming part of an industrial undertaking.

3.     The asset must have been used in the 2years immediately preceding the date of transfer of the assessee for the purpose of the business of the undertaking.

4.     Within a period of 3 years after the date of compulsory acquisition any other land or building should be purchased or constructed for the use of existing or newly set up industrial undertaking.

Actual amount invested in new asset or the capital gain whichever is less.

54EC

Any assessee

1.     The asset transferred should be a long-

term capital asset

2.Within a period of 6 months after the date of transfer, the capital gain must he invested in the specified assets i.e. bonds redeemable after 3 years issued by NHAl or RECL.

Actual amount invested in new asset or the capital gain whichever is less.

However, maximum amount which can be invested in any financial year cannot exceed Rs. 50,00,000

5 4  F

Individual/HUF

1.     The asset transferred should be a long-

term capital asset, not being a residential house.

2. Within a period of I year before or 2 years after the date of transfer, a residential house should be purchased or constructed within a period of 3 years after the date of transfer.

3. The assessee should not own more than one residential house on the date of transfer.

4. The assessee should not within a period of one year purchase or should not within a period of 3 years construct any residential house other than the new asset.

If the cost of the new

residential house is not

less    than    the    net

consideration  then  the

whole of the capital gain.

Otherwise,

Ami. invested

ITCG x—————– :——-

Net consideration price

54G

Any assessee being an industrial undertaking

1 Machinery, plant, building, or land used

for  the   business   of  an   industrial undertaking situated in an urban area should have been transferred.

2.Transfer should be due to shifting to any area other than an urban area.

If the cost of the new assets and expenses incurred for shifting are greater than the capital gain, the whole of such capital gain. Otherwise capital gain to the extent

 

   

3.   Within a period of 1 year before or 3 years after the date of transfer purchased machinery, plant or acquired building or land   or   constructed   building   and completed shifting to the new area.

of the cost of the new asset.

54GA

Any assessee being an industrial undertaking

1. Machinery, plant, building, or land used

for the business of an industrial undertaking situated in an urban area should have been transferred.

2.Transfer should be due to shifting to any Special Economic Zone whether developed in any urban area or any other area.

3. Within a period of 1 year before or 3 years after the date of transfer purchased machinery, plant or acquired building or land   or   constructed   building   and completed shifting to the new area.

If the cost of the new assets and expenses incurred for shifting are greater than the capital gain, the whole of such capital gain. Otherwise capital gain to the extent of the cost of the new asset.

Notes : Capital Gain Scheme.—If the new asset is not acquired under sections 54, 54B, 54D, 54F, 54G and 54GA or the full amount could not be invested upto the due date of furnishing the return of income, the assessee can deposit the desired amount under the Capital Gain Scheme on or before the due date of return and thus can acquire the asset within the stipulated time out of money withdrawn from such scheme at a later date. In the case of section 54EC the Capital Gain Scheme is not applicable.



Consequences if the new asset acquired is transferred within 3 years of its acquisition Under sections 54, 54B, 54D, 5->G and 54GA.—For computation of new Capital Gain (which will be short-term), the cost of acquisition of such new asset shall be reduced by the amount of Capital Gain exempt under sections 54, 54B, 54D and 54G earlier.

UNDER 54F.—Besides the new Capital Gain (which will be short-term), the Capital Gain exempt earlier under section 54F, shall be long-term capital gain of the previous year in which new asset is transferred.

Under section 54EC.—If such security acquired is converted into money or any loan is taken against such securities within 3 years, the Capital Gain exempt under section 54EC for such securities earlier shall be long-term Capital Gain of the previous year in which such conversion takes place or the loan is taken.

Consequences if the amount deposited in Capital Gain Scheme is not utilised within the stipulated time of 3 years (2 years in case of section 54B).—The unutilised amount shall be Capital Gain (short-term or long-term depending upon original transfer) of the previous year in which such period has expired. However, in case of section 54F, proportionate amount shall be taxable.

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N MAHESH (M.Com)     20 October 2015

N MAHESH
M.Com 
 21 points

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1) Guide to E File Income Tax Return for Ancestral Properties

2) How to Calculate Ancestral Properties

Regards

Mahesh

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SANDEEP U DHAMAL   27 October 2015

SANDEEP U DHAMAL

 22 points

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Sir,

CHAKAN MIDC PLOT SALE & BHOSARI MIDC PLOT PURCHASES SO CAPITAL GAIN ALLOW UNDER 54G

CA.Mayank Mehta (INTERNAL AUDITOR)     24 February 2016

CA.Mayank Mehta
INTERNAL AUDITOR 
 27 points

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Dear Sir,

If a person purchase a Agriculture land and avail the benefit of 54B and afterwords before expiry of 3 years the person converts the Agriculture Land into Non Agriculture land then what will be the implication ?

And if taxable then in which year it will be taxable and what will be the value ?

thanks

avater

Jaya shree   06 June 2016

Jaya shree

 1 points

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Whether we can claim exemption for purchase of agricultural Land by selling House property

Please reply me asap.

Thanks in Advance.

avater

Nanthakumar (Student...doing inter)     17 October 2017

Nanthakumar
Student...doing inter 
 22 points

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What will be the exemption if there is a capital loss?

There is a capital loss in transfer of building (used for industrial undertaking) on compulsory aquisition.what will be the exemption u/s 54D in this case?

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Raj Sekhar Pati   22 August 2018

Raj Sekhar Pati

 11 points

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I HAVE CAPITAL GAIN IN THE PREVIOUS YEAR. BUT I WANT TO RE-INVESTMENT THE GAIN FOR PURCHAING OF NEW ASSET AFTER ONE MONTH. I WANT TO FILE MY INCOME TAX RETRUN TO-DAY I.e 22/08/2018. SO MY QUESTION IS WHAT AMOUNT SHOULD I SHOW IN THE COULUMN COST OF NEW ASSET OF POINT."D" OF CAPITAL GAIN SHEDULE IN ITR 3. I DONT KNOW THE EXACT AMOUNT OF NEW ASSET WHICH I WILL PURCHASE IN FUTURE. BUT THE COST OF NEW ASSET IS MORE THAN MY LONG TERM CAPITAL GAIN

 

Sunil (Consultant)     23 August 2019

Sunil
Consultant 
 29 points

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Hello, The query is : I sold old house in July 2018 and CG as per valuation is 50 Lacs (Sales Value - Indexed Cost). I own a flat jointly in name of my wife since 2005. I purchased a plot from above amount for 40 Lacs in September 2018 and deposited unutilized 12 Lacs in SBI Capital Gain Account. in July 2019 pending construction work by contractor. Now the ITR-3 has to filed because I have income from Training & Coaching Profession also. I have to claim exemptions under Sec54 for plot purchase and 54F for SBI-CG A/C - Is there any fault. Thanks in advance. & Regards,

Read more at: https://www.caclubindia.com/forum/capital-gain-from-sale-of-old-house-526114.asp
 


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