Exemption from capital gains tax

Tax planning 881 views 1 replies

The union budget 2012 provide for "Exemption from Capital Gains tax on sale of residential property, if sale consideration

 

is used for subscripttion in equity of a manufacturing SME for purchase of new plant and
machinery"
 
Please let us know if the same would be applicable in investment by individual investor into a private limited company (SME).
 
Sriram
Replies (1)

Yes.......any person defined in Income Tax Act, can claim exepmtion under this provision , provided that investment in manufacturing SME is used in purchase of new plant and machinery.


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