Exemptions under Section 54 Series

 

SUMMARISED VIEW OF EXEMPTIONS SPECIFIC TO CAPITAL GAINS HEAD OF INCOME: -

Sr. N o.

Description

Sec. 54

Sec. 54B

Sec. 54F

Sec. 54D

Sec. 54EC

Sec. 54G

Sec. 54GA

1.	Eligible Assessee	Individual & HUF	Individual & HUF	Individual & HUF	Any Assessee	Any Assessee	Any Assessee	Any Assessee
2.	Asset to be sold	Any Long-term capital asset being Residential House subjected to IFHP (Buildings or Land appurtenant thereto)	Urban Agricultural Land (used by assessee being individual or his parents or by HUF for agricultural in immediately preceding 2 years)	Any Long-term capital asset (other than residential house) but including plot of land   Note: Not owning more than 1 resi. House in India at said point of time	Any land/building/land & building belonging to industrial undertaking (acquired under compulsory acquisition scheme) (used by assessee for business of industrial undertaking in immediately preceding 2 years, even if he himself is not the owner then)	Long term capital asset being “Land or Building or Both” (irrespective of it being held as depreciable/non-depreciable asset)	Shifting of industrial undertaking form Urban area to area other than Urban area leading to “transfer of capital asset being machinery/plant/ building/land/right to use building or land”	Shifting of industrial undertaking form Urban area to SEZ area leading to “transfer of capital asset being machinery/plant/ building/land/right to use building or land”
3.	To be used for	Use Capital gains so generated for:	Use Capital gains so generated for: Purchase of Urban/Rural agricultural land within 2 years from date of transfer	Use Net Sale Consideration so generated for: Either for purchase of 1 residential house within 1 year before or 2 years after the date of transfer OR For construction of 1 residential house within 3 years after date of transfer, Subject to maximum COA beneficial restricted to Rs. 10 Crores	Use Capital gains so generated for: Purchase of land/building/right in land or building or Construct any building within 3 years from date of transfer	Use Capital gains so generated for: Invest within span of 6 months of date of transfer, the CG so generated, in specified long term capital asset being bonds redeemable within 5 years issued on or after 01.04.2018 by NHAI or RECL or PFC or RFC or other bonds as notified by Central Government (maximum exemption allowed and thus maximum investment beneficial is Rs. 50 lakhs)	Use Capital gains (short term or long term) so generated within 1 year before or 2 years after for purchase of: -        New plant-machinery of purpose of business of undertaking; -        Acquisition of land/building or Construction of building for business purpose; -        Shifted original asset & transferred establishment of undertaking from urban to other area; -        Incurred exps. For purpose specified in Central Government framed scheme	Use Capital gains (short term or long term) so generated within 1 year before or 2 years after for purchase of: -        New plant-machinery of purpose of business of undertaking; -        Acquisition of land/building or Construction of building for business purpose; -        Shifted original asset & transferred establishment of undertaking from urban to SEZ area; -        Incurred exps. For purpose specified in Central Government framed scheme
		CG<= Rs. 2crores
		Either for purchase 2 residential houses within 1 year before or 2 years after date of transfer OR For construction of 2 residential houses within 3 years from date of transfer
		CG> Rs. 2 crores
		Either for purchase 1 residential house within 1 year before or 2 years after date of transfer OR For construction of 1 residential house within 3 years from date of transfer
4.	Holding period of new asset/investment (Note- If not held for period as specified, then capital gains amount earlier allowed as exemption, be taxed in year in which new asset is so transferred)	3 years from date of purchase/ Constructio-n	3 years from date of purchase	3 years from date of purchase/constr-uction	3 years from date of purchase/construction	5 years from date of acquisition of such bonds	3 years from date of purchase/construct-ion	3 years from date of purchase/construct-ion
5.	Quantum of exemption allowed	Actual LTCG or amount of LTCG applied to investment/acquisition/constructi-on of specified asset, whichever is lower, subject to maximum of Rs. 10 Crores	Actual CG or amount of CG applied to investment/acquisition/co-nstruction of specified asset, whichever is lower	If COA>= Net sale consideration, then full LTCG allowed as exemption OR If COA< Net sale consideration, then Exemption= LTCG*(Lower of “COA Of new house” or “Rs. 10 Crores”/ Net Sale Consideration)	Actual LTCG/STCG or amount of LTCG/STCG applied to investment/acquisition/construction of specified asset, whichever is lower	Actual CG or amount of CG applied to investment of specified asset, whichever is lower, subject to maximum Rs. 50 lakhs	Actual LTCG/STCG or amount of LTCG/STCG applied to investment/acquisition/construction of specified asset (+) expenses for specified purpose, whichever is lower	Actual LTCG/STCG or amount of LTCG/STCG applied to investment/acquisition/construction of specified asset (+) expenses for specified purpose, whichever is lower
6.	Amount deposited to CGAS be also added to COA for determining of quantum of exemption; Note- however amount so deposited be utilized in prescribed period of 2/3 years as case may be	In case said amount of CG cannot be used fully for acquisition of specified asset till the date of filing of ROI, then such CG is supposed to be deposited in CGAS before such date to avail benefit. (Maximum deposit= 10 Crores - Actual CG already spent)	In case said amount of CG cannot be used fully for acquisition of specified asset till the date of filing of ROI, then such CG is supposed to be deposited in CGAS before such date to avail benefit.	In case said amount of NET CONSIDERATION cannot be used fully for acquisition of specified asset till the date of filing of ROI, then such NET CONSIDERATION is supposed to be deposited in CGAS before such date to avail benefit. (Maximum deposit= 10 Crores - Actual NET CONSIDERATION already spent)	In case said amount of CG cannot be used fully for acquisition of specified asset till the date of filing of ROI, then such CG is supposed to be deposited in CGAS before such date to avail benefit.	N.A.	In case said amount of CG cannot be used fully for acquisition of specified asset till the date of filing of ROI, then such CG is supposed to be deposited in CGAS before such date to avail benefit.	In case said amount of CG cannot be used fully for acquisition of specified asset till the date of filing of ROI, then such CG is supposed to be deposited in CGAS before such date to avail benefit.
7.	Important Reference case laws for clarity	a.) CIT v. Syed Ali Adil (2013) 352 ITR 0418 (A.P.);   b.) CIT v. Ananda Basappa (2009) 309 ITR 329;   c.) CIT v. K.G. Rukminiamma (2011) 331 ITR 211	a.) CIT v. Gurnam Singh (2010) 327 ITR 278(P&H)	a.) CIT v. Kamal Wahal (2013) 351 ITR 4 (Delhi);   b.) CIT v. Ravinder Kumar Arora (2012) 342 ITR 38 (Delhi);   c.) CIT v. Sambandam Udaykumar (2012) 345 ITR 389 (Kar.);   d.) Gouli Mahadevappa v. ITO (2013) 356 ITR 90 (Kar.)		a.) CIT v. V.S. Dempo Company Ltd. (2016) 387 ITR 354 (SC);   b.) Hindustan Unilever Ltd. v. DCIT (2010) 325 ITR 102 (Bom.)	a.) Fibre Boards (P) Ltd. v. CIT (2015) 376 ITR 596 (SC)