Exemption claimable - if purchase agriculture land from arising capital gain on sales of residential property ?
Sunil Mohapatra (Services) (33 Points)
19 July 2010Exemption claimable - if purchase agriculture land from arising capital gain on sales of residential property ?
Joshua
(Self Employed)
(106 Points)
Replied 19 July 2010
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 the
head ‘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 2
years 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
immediately preceding the date of
transfer for agricultural purposes either
by 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 2
years 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 |
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. |
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