Exemption u/s 54gb of income tax act

HI,

 

MY QUESTION IS RELATED TO EXEMPTION OF LONG TERM CAPITAL GAIN UNDER SECTION 54GB, IN CASE PURCHASE OF EQUITY SHARE IN ELIGIBLE COMPANY.

 

I HAVE A QUERY IN MY MIND THAT WHETHER ASSESSEE HAVE TO INVEST ALL THE SALE CONSIDERATION TO BUY EQUITY SHARE TO AVAIL EXEMPTION OR CAN INVEST LOWER AMOUNT TO AVAIL EXEMPTION ON PROPORTIONATE BASIS .

Replies (3)
Originally posted by : Jay kumar shukla
HI,

 

MY QUESTION IS RELATED TO EXEMPTION OF LONG TERM CAPITAL GAIN UNDER SECTION 54GB, IN CASE PURCHASE OF EQUITY SHARE IN ELIGIBLE COMPANY.

 

I HAVE A QUERY IN MY MIND THAT WHETHER ASSESSEE HAVE TO INVEST ALL THE SALE CONSIDERATION TO BUY EQUITY SHARE TO AVAIL EXEMPTION OR CAN INVEST LOWER AMOUNT TO AVAIL EXEMPTION ON PROPORTIONATE BASIS .

If Investment Full or More than Sale Consideration Than Exemption of Full CG

If Investment Less  than Sale Consideration Than Exemption of CG on proportionate Basis.

 

The government had introduced Section 54GB in FY13 wherein if an individual sold his/her house and invested the *********entire proceeds (not just the gains) in a start-up, he/she would not require to pay any capital gains tax.

 

*******entire proceeds.....what its means?

 

 

entire proceeds refers to whole of sale consideration

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