Capital Gains Tax Exemption available in India for the AY 2008-09 FY 2007-08 is given below.
Capital Gain Tax Exemption available for Individuals or HUFs
Capital Gain Exemptions available for Any Assessee
Section Ref 54 Eligible Assessee Individual and HUF Capital Asset Transferred Residential house chargeable under the head "Income from House Property". And It should be a long-term capital asset. Capital Asset Invested Acquires , a Residential House within one year before or two years after the date of transfer.Or, Constructs a Residential House within three years. Quantum of Exemption Lower of the following: - Withdrawal of Exemption If the new asset is transferred within three years from the date of acquisition or construction, then the cost of new asset claimed as exempt shall be reduced by the capital gains. Go to Top
Section Ref 54B Eligible Assessee Individual Capital Asset Transferred Agricultural lands (situated in specified area) used for agriculture for at least two years before transfer by the assessee or his parents. Capital Asset Invested Acquires any other agricultural land within two years. Quantum of Exemption Lower of the following: - Cost of new lands. Capital Gains. Withdrawal of Exemption If the new capital asset is transferred within three years from the date of acquisition, then the cost of new asset claimed as exempt shall be reduced by the capital gains. Go to Top
Section Ref 54F Eligible Assessee Individual and HUF The following conditions are to be fulfilled by the assessee: - He does not own more than one residential house, other than new asset, on the date of transfer of original asset. He does not purchase more than one residential house within a year or constructs within three years after the date of transfer of the asset. The income from such residential house is chargeable under the head "Income from House Property", other than the one owned at the time of transfer. Capital Asset Transferred Any long-term capital asset not being a residential house property. Capital Asset Invested Acquires a Residential House within one year before or two years after the date of transfer, Or Constructs a Residential House within three years. Quantum of Exemption If the cost of new asset is less than the net consideration, then the so much of the capital gain as the whole of the capital gains bears to the net consideration is exempt. Withdrawal of Exemption If the assessee Transfer the new asset within three years from the date of acquisition or construction, then the cost of new asset claimed as exempt shall be reduced by the capital gains. Purchases or Constructs a residential house (other than the new asset) with in 2 years after the date of transfer then any amount claimed as exempt shall be reduced by the capital gains.
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Section Ref 54EC Eligible Assessee Any Assessee Capital Asset Transferred Any long-term capital asset Capital Asset Invested Within six months after the date of transfer invested the whole or any part of capital gains in any Bond (Redeemable after three years) issued on or after 01.04.2006 by Note: - Maximum Limit for Investment in a New Asset is Rs.50 Lakhs If exemption is availed here, then rebate under section 80C is not available. Quantum of Exemption Lower of the following: - Cost of new assets. Capital Gains. Withdrawal of Exemption If, within a period of three years: - then the amount which was exempt from Capital Gains, will be chargeable in the year of such event. Go to Top
Section Ref 54D Eligible Assessee Any Assessee Capital Asset Transferred Compulsory acquisition (under any law) of forming part of an industrial undertaking used by the assessee for business for at least two years before the date of transfer. Capital Asset Invested Within three years from the date of transfer has acquired any other land or building or any right in any other land or building or constructed any other building for shifting or re-establishing the industrial undertaking. Quantum of Exemption Lower of the following: - Cost of new assets. Capital Gains. Withdrawal of Exemption If the new asset is transferred within three years from the date of acquisition, then the cost of acquisition of new asset shall be reduced by the capital gains already exempt. Go to Top
Section Ref 54G Eligible Assessee Any Assessee Capital Asset Transferred Transfer of Machinery, Plant, Building or Land, or any rights in the Building or Land used for the purposes of business of an industrial undertaking situate in an Urban area, to any area (other than an urban area). Capital Asset Invested Within a period of one year before or three years after the date of transfer: - Purchased new machinery or plant; Acquired building or land or constructed building; Shifted the original asset and transferred the establishment of such undertaking; & Incurred expenses specified in a scheme framed by the Central Government for the purposes of this section. Quantum of Capital gains tax Exemption Lower of the following: - Withdrawal of Exemption If the new asset is transferred within three years from the date of acquisition, then the cost of acquisition of new asset shall be reduced by the capital gains already exempt. Go to Top
Section Ref 54GA Eligible Assessee Any Assessee Capital Asset Transferred Transfer of Machinery, Plant, Building or Land, or any rights in the Building or Land used for the purposes of business of an industrial undertaking situate in an Urban area, to Special Economic Zone. Capital Asset Invested Within a period of one year before or three years after the date of transfer: - Purchased new machinery or plant; Acquired building or land or constructed building; Shifted the original asset and transferred the establishment of such undertaking; & Incurred expenses specified in a scheme framed by the Central Government for the purposes of this section. Quantum of Capital Gains Tax Exemption Least of the following: - Withdrawal of Exemption If the new asset is transferred within three years from the date of acquisition, then the cost of acquisition of new asset shall be reduced by the capital gains already exempt. Go to Top
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