Parag Kukreja

Parag KukrejaArticle Explains all about Section 54, Section 54B, Section 54D, Section 54G/ 54GA in case of shifting to SEZ, Section 54EC, Section 54F and Section 54GB

S.No. Basis Section 54 Section 54B Section 54D
1.) Allowability Exemption is Allowed provided the Assessee has Long Term Capital Gains on transfer of Residential House Exemption is Allowed provided the Assessee has  Capital Gains on transfer of Agricultural Land Exemption is Allowed provided the Assessee has  Capital Gains on Compulsory Acquisition of Industrial Undertaking.
2.) Allowed To Individual/HUF Individual/HUF All Assessees
3.) Conditions to be Satisfied a.) The Assessee Should have purchased one house either one year before or two years after the date of transfer OR The Assessee should Construct one house within three years after the date of transfer a.) The Assessee Should have purchased one or more Agricultural Land within a period of two years after the date of transfer a.) The Assessee Should have Invested the Amount in Land and Building for the purpose of Industrial Undertaking within a period of Three years after the date of Payment by Government.
b.) The Assesee Should either Purchase or Construct only one House within the specified time period. b.) The Assesee or his parents should have been using Agricultural Land so transferred for a period of atleast 2 years at the time of Sale b.) The Assesee  should have been using such Land and Building  for the purpose ofIndustrial Undetaking for a period of atleast 2 years at the time of Acquisition.
c.) The House so purchased or constructed should not be transferred for a period of atleast Three Years c.) The Land so purchased  should not be transferred for a period of atleast Three Years c.) The Land and Building so purchased  should not be transferred for a period of atleast Three Years
4.) Amount of Exemption Amount of Exemption shall be equal to Amount Invested(Subject to Capital Gains) Amount of Exemption shall be equal to Amount Invested(Subject to Capital Gains) Amount of Exemption shall be equal to Amount Invested(Subject to Capital Gains)
5.) Capital Gain Accounts Scheme,1988 Aplicability* Applicable Applicable Applicable
6.) Consequences If Assessee Violates Condition c.) stated above Exemption earlier allowed shall be withdrawn in special manner i.e. While Computing Capital Gains, Cost of Acquistion shall be reduced by the amount of exemption earlier taken. If Assessee Violates Condition c.) stated above Exemption earlier allowed shall be withdrawn in special manner i.e. While Computing Capital Gains, Cost of Acquistion shall be reduced by the amount of exemption earlier taken. If Assessee Violates Condition c.) stated above Exemption earlier allowed shall be withdrawn in special manner i.e. While Computing Capital Gains, Cost of Acquistion shall be reduced by the amount of exemption earlier taken.
———
S.
No.
Basis
Section 54EC
Section 54F
Section 54GB
Section 54G/ 54GA
1.)
Allowability
Exemption is Allowed provided the Assessee has  Capital Gains on transfer of any Capital Asset
Exemption is Allowed provided the Assessee has Long Term Capital Gains on transfer of any Capital Asset except Residential House
Exemption is Allowed provided the Assessee has Long Term Capital Gains on transfer of any Residential House or Plot.
Exemption is Allowed provided the Assessee has  Capital Gains in connection with shifting of Industrial Undertaking from Urban area to any other area.
2.)
Allowed To
All Assessees
Individual/HUF
Individual/HUF
All Assessees
3.)
Conditions to be Satisfied
a.) The Assessee Should have Invested the Amount in Long Term Specified Asset within a period of Six Months from the date of transfer. However from the Assessment Year 2018-19 investment in any bonds redeemable after three years shall be eligible for exemption
a.) The Assessee Should have purchased one house either one year before or two years after the date of transfer OR The Assessee should Construct one house within three years after the date of transfer
a.) The Assessee Should have Incorporated a new company before due date of filling of Return of Income & Should have subscribed to more than 50% of the Shares of the Company.
a.) The Assessee Should have Invested the Amount in Land and Building or P&M ( Not Furniture & Fixture  for the purpose of Industrial Undertaking either one year before or three years after the date of transfer
b.) The Assesee  is not allowed to Convert the Security into Cash i.e. The Assessee is not allowed to take Loan on the basis of security
b.) The Assesee Should either Purchase or Construct only one House within the specified time period. Also, the Assessee should not have more than one house in his name at the time of transfer.
b.) The Assesee Should Invest the Amount in Plant & Machinery within one Year from the date of Purchase of Shares.
Exemption shall also be allowed for shifting expenses
c.) The Asset so purchased  should not be transferred before its expiry period.
c.) The House so purchased or constructed should not be transferred for a period of atleast Three Years
c.) The Plant & Machinery so purchased  should not be transferred for a period of atleast Five Years.
c.) The Asset so purchased  should not be transferred for a period of atleast three years.
4.)
Amount of Exemption
Amount of Exemption shall be equal to Amount Invested(Subject to Capital Gains)
Amount of Exemption shall be equal to Capital Gains/Net Consideration*Amount of Investment
Amount of Exemption shall be equal to Capital Gains/Net Consideration*Amount of Investment (Subject to Capital Gains)
Amount of Exemption shall be equal to Amount Invested in Land & Building and Plant & Machinery(Not Furniture & Fixture)  (Subject to Capital Gains)
5.)
Capital Gain Accounts Scheme,1988 Aplicability*
Not Applicable
Applicable
Not Applicable. However If Assessee fails to make investment in P&M within one year then amount shall be deposited into Specified Bank Account
Applicable
6.)
Consequences
If Assessee Violates Condition c.) stated above Exemption earlier allowed shall be considered to be Long Term Capital Gain of the Year in which the Asset has been transferred.
If Assessee Violates Condition c.) stated above Exemption earlier allowed shall be considered to be Long Term Capital Gain of the Year in which the Asset has been transferred.
If Assessee Violates Condition c.) stated above Exemption earlier allowed shall be withdrawn in special manner i.e. While Computing Capital Gains, Cost of Acquistion shall be reduced by the amount of exemption earlier taken.
If Assessee Violates Condition c.) stated above Exemption earlier allowed shall be considered to be  Capital Gain of the Year in which the Asset has been transferred.

Capital Gain Accounts Scheme,1988*:-

1.) For Claiming Exemption, Assessee Should make Investment before Due Date of Filing of Return of Income.

2.) If the Assessee Fails to do so, Amount should be deposited in Capital gain Accounts Scheme before due date of return of Income to Claim the Exemption.

3.) Amount so Deposited can be withdrawn only for making Investment within the prescribed period.

4.) Any utlised amont in Capital Gain Scheme shall be considered to be capital gain of the year in which time period has been expired.

5.) Any Interest received on such amount shall be Considered to be income u/h Other Sources.

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Category : Income Tax (24676)
Type : Articles (13205)

3 responses to “All about Section 54, 54B, 54D, 54g, 54GA, 54EC, 54G & 54GB”

  1. DINKAR VISHWANATH SARAF says:

    I have constructed 3 room small house of 550 sq.ft. in1976. now I wanted to reconstruct it with the help of capital gain under 54F

  2. sekar says:

    If A & B are jointly having a flat and also having one flat each in their single name. If the joint property is sold and the Capital gain is invested in a new flat in same joint names, whether capital gain exemption under sec 54 is available if the investment in new flat is done within 3 months from now.???

  3. Prashanth says:

    Thank for Sharing information,
    If a person purchase a Agriculture land and avail the benefit of 54B and afterwords before expiry of 3 years the person converts the Agriculture Land into Non Agriculture land then what will be the implication ?

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