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Exemptions Under Section 54


VFN Team - May 23, 2018 - 0 comments

Exemptions under section 54:

 

Section 54

Section 54B

Section 54D

Asset transferred

residential house

Agricultural land

Land and building for industrial undertaking (compulsory acquisition)

Who can avail it

Individual / HUF(Hindu Undivided Family)

Individual / HUF(Hindu Undivided Family)

All

The Period of use before the sale of asset

Long term capital gain

Used by him or his parents for 2 years or more than that

Used by him or his parents for 2 years or more than that

New asset purchased

Residential house

Agricultural land

Land and building for industrial undertaking

Exemption

Capital gains invested

Capital gains invested

Capital gains invested

Prescribed period for investment

Purchase within one year

Or, 2 year after date of transfer

Or, completed construction within 3 years, after the date of transfer

Within 2 years after date of transfer

Within 3 years after date of receipt of compensation on such compulsory acquisition

Treatment of unutilized amount

Deposit in capital gains a/c scheme up to due date of furnishing the return income

Deposit in capital gains a/c scheme up to due date of furnishing the return income

Deposit in capital gains a/c scheme up to due date of furnishing the return income

Withdrawal of exemption

If sold within 3 years from the date of purchase/construction, capital gain exempt shall be reduced from cost of acquisition of new asset

If sold within 3 years from the date of purchase/construction, capital gain exempt shall be reduced from cost of acquisition of new asset

If sold within 3 years from the date of purchase/construction, capital gain exempt shall be reduced from cost of acquisition of new asset

 

 

Section 54EC

Section 54F

Section 54G

Asset transferred

Any asset

Any asset other than residential house

Plant/machinery or land/building used for industrial undertaking in urban area

Who can avail it

All

Individual / HUF(Hindu Undivided Family)

All

Period of use before the sale of asset

Long term capital gain

Long term capital gain

NA

New asset purchased

Bonds of NHAI(national highway authority of India), RECL

Residential house

Plant/machinery or land/building for industrial undertaking in non-urban area + shifting expenses

Exemption

Capital gains invested

Proportionate net consideration invested

Capital gains invested

Prescribed period for investment

6 months from transfer

Purchase within one year

Or, 2 year after date of transfer

Or, completed construction within 3 years, after the date of transfer

Within 1 year before or within 3 years after transfer

Treatment of unutilized amount

NA

Deposit in capital gains a/c scheme up to due date of furnishing the return income

Deposit in capital gains a/c scheme up to due date of furnishing the return income

Withdrawal of exemption

If sold within 3 years within acquisition, exempted gain taxable as long term capital gain in the year of transfer of new asset

If sold within 3 years from the date of purchase/construction, capital gain exempt shall be taxable as long term capital gain in year of transfer

If sold within 3 years from the date of purchase/construction, capital gain exempt shall be reduced from cost of acquisition of new asset

 

 

 

 

 

 

 

 

 

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