Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Sunil Mohapatra (Services)     19 July 2010

Exemption on capital gain

Exemption  claimable - if purchase agriculture land from arising capital gain on sales of residential  property ?   



 1 Replies

Joshua

Joshua (Self Employed)     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.

See : Factor determine when an agricultural land is capital asset or not for calculation of capital gain tax.

—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

54F

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.

 

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading
Start a New Discussion

Popular Discussion


view more »







Subscribe to the latest topics :
Search Forum:

Trending Tags