Capital Gains Exemption

Capital Gains Exemption u/s 10

Exemptions are available u/s 10 for the following Capital Gains

• Units of UTI

• Eligible Equity Share in Recognised Stock Exchange

• Agricultural Lands

• Shares/Units listed in Recognised Stock Exchange

• Others

Exemptions available for Units of UTI

Any income arising from transfer of a capital asset, on or after 01.04.2002, being a unit of Unit Scheme, 1964 referred to in Schedule I to the Unit Trust of India Act, 2002, is exempt under section 10(33).

Eligible For:

Any Assessee

Quantum of Exemption:

Fully Exempt

Capital gain Exemptions for Eligible Equity Share in Recognised Stock Exchange

Any income arising from transfer of a long-term capital asset, being an eligible equity share in a company purchased on or after 01.03.2003 and on or before 29.02.2004, and held for a period of 12 months are more, shall be exempt under section 10(36).

For this 'eligible equity share' means -

• Any equity share listed in BSE 500 index and the purchase or sale of such shares is transacted in a Recognised Stock Exchange in India, and

• Any equity share allotted through a Public Issue during the said period and the transaction of sale is entered into on a Recognised Stock Exchange in India.

Eligible For:

Any Assessee

Quantum of Exemption:

Fully Exempt

Capital Gains Exemption for Agricultural Lands

Under section 10(37), any income chargeable under the head "Capital Gains" arising from the transfer of agricultural land, in the case of an assessee, being an Individual or HUF, is exempt where -

(a) Such Land

• Is located in any referred to in item (a) or (b) of section 2(14)(iii), and

• Was being used for agricultural purpose by such HUF or Individual or a Parent of Individual, during the period of two years immediately preceding the date of transfer.

(b) Such Transfer

• Is by way of compulsory acquisition under any law, or

• The consideration of which is determined or approved by Central Government or RBI

(c) Such Income

Has arisen from the compensation or consideration for such transfer received by such assessee on or after 01.04.2004.

Eligible For:

Any Assessee

Quantum of Exemption:

Fully Exempt

Capital Gains Exemption for Shares/Units listed in Recognised Stock Exchange

Under section 10(38), any income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund is exempt, where -

1. The transaction of sale of such equity share or unit is entered into on or after the date on which Securities Transaction Tax comes into force (i.e., 01.10.2004) and

2. Such transaction is chargeable under Securities Transaction Tax.

For this purpose, Equity Oriented Fund means a fund -

1. Where the investible funds are invested by way of equity shares in domestic companies to the extent of more than 65% of the total proceeds of such fund; and

2. Which has been set up under a scheme of a Mutual Fund specified under section 10(23D)

Eligible For:

Any Assessee

Quantum of Exemption:

Fully Exempt

Other Capital Gains exemption available under section 10: -

1. Any Capital Gain in the hands of "Venture Capital Company" (VCC) or "Venture Capital Fund" (VCF) - Section 10(23FB).

2. Long-term Capital Gains in the hands of Infrastructure Capital Company (ICC) or Infrastructure Capital Fund (ICF) - Section 10(23G).

3. Political Parties - Section 13A.

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