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Deductions Capital Gain

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Capital Gain - Deductions



                                                                                                                             

Sec

Nature of capital asset

Applicable to

New Asset

Time limit for investment

Exemption

Deposit scheme

Revocation of benefit

54

Long term Residential House

Individual or HUF

Residential House

Within 1 year before or 2 years after the date of transfer in case of purchase, or within 3 years after the date of transfer, in case of new construction.

Capital gains or amount invested, whichever is less.

Yes

If new asset is sold within 3 years, then benefit availed earlier will be revoked and shall be reduced from cost of new asset.

54B

Agricultural land used for agro purpose for 2 years by him or his parents

Individual (w.e.f. A.Y. 2013-14, individual & HUF)

Agricultural Land

Within 2 years after transfer

Capital gains or amount invested, whichever is less.

Yes

If new asset is sold within 3 years, then benefit availed earlier will be revoked and shall be reduced from cost of new asset.

54D

Land and building used for industrial undertaking for 2 years

Any assessee

Land and Building for industrial undertaking

Within 3 years after receipt of initial compensation

Capital gains or amount invested, whichever is less.

Yes

If new asset is sold within 3 years, then benefit availed earlier will be revoked and shall be reduced from cost of new asset.

54EC

Long term capital assets

Any assessee

Specified bonds redeemable after 3 years in National Highways Authority or Rural Electrification Corp Ltd.

Within 6 months after transfer

Capital gains or amount invested, whichever is less.

Max. Rs.50 Lacs

No

If new asset is sold within 3 years, then earlier exemption shall be revoked and will be deemed to be LTCG in the year of transfer of new asset.

54F

Any LTCA other than residential house.

Individual or HUF

Residential house. Assessee should not own more than one house.

Within 1 year before or two years after transfer in case of purchase or 3 years after transfer in case of construction.

(Capital Gain/ Net Consideration) * Amount invested

Yes

If new asset is sold within 3 years, or new asset acquired within 3 years, then earlier exemption shall be revoked and will be deemed to be LTCG.

54G

Plant & machinery or land & building for industrial undertaking in urban area (LTCA or STCA)

Any assessee

Plant and Machinery or Land and Building used for industrial undertaking in non-urban area or meeting expenses of shifting.

Within one year before or 3 years after the date of transfer.

Capital gains or amount invested, whichever is lower

Yes

If new asset is sold within 3 years, then capital gain will be revoked and shall be reduced from cost of new asset.

54GB
Long term Residential House (W.e.f. A.Y. 2013-14)
Individual or HUF
Subscription in equity shares of eligible company. In turn, eligible company invest such money in acquiring plant and machinery (except few)

For subscription in equity shares: Within due date of furnishing return of income.

             

For acquiring plant and machinery by eligible company: Within 1 year from the date of such subscription
             

(Capital Gain/ Net Consideration) * Amount invested
Yes (for eligible co.)

If equity shares are sold within 5 years from the date of acquisition.

           

If such plant and machinery is transferred by eligible company within 5 years from the date of acquisition.

w.e.f. A.Y. 2006-07, Sec.54GA inserted, provisions of which are parallel to sec. 54G but applicable when industrial undertaking is shifted to SEZ.