Exemption under Long term capital Gains

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30 Points Posted on 06 April 2021

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.

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On 06 April 2021 at 13:53 Report
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Quick Summary
A private limited company, after selling its manufacturing assets years ago, is now selling its land and expects a long-term capital gain. The discussion explores eligibility for tax exemption under Section 54G of the Income Tax Act. This section allows for exemption if the sale consideration is reinvested in land, buildings, or plant and machinery for shifting an industrial undertaking to a rural area.

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Chartered Accountant
24588 Points Posted on 06 April 2021
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
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On 06 April 2021 at 14:15
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30 Points Posted on 06 April 2021

Can i get any tax benefit u/s 54G

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On 06 April 2021 at 15:01
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Chartered Accountant
24588 Points Posted on 06 April 2021
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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On 06 April 2021 at 15:23

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