Exemption under Long term capital Gains

Tax queries 142 views 3 replies

A Private Limited Company is in the existence since last 30 Years. It has sale all assets 10 years back, except Land. It was in the business of manufacturing of Ingot ( Melting of steel ).

Now it is selling Land on which it will be getting Long Term Capital Gain.

Can this sale consideration be invested in another Land and do a business of manufacturing of same other business and get exemption on Long Term Capital Gain on sale of land U/S 54G.

Replies (3)
No, for getting exemption u/s 54EC any sale of asset arises LTCG then exemption can be available if any building or house is purchased within 2 years of sale and if that house or property is in construction then that should be completed within 3 years of sale

Can i get any tax benefit u/s 54G

Sorry that section should be 54F,

Amount of exemption available under section 54G of the Income Tax Act
If all the above specified conditions / criteria are satisfied, then the claimant is eligible for availing lower of the following amounts as an exemption –

An amount invested into land and building and plant and machinery for shifting of industrial undertaking in a rural area; or
The amount of capital gain.


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