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 This is the Summary of Different Sections of Income Tax Act for Easier Understanding and Rememberance

  Section 54 Income Tax Act - Capital Gain Chart.jpg

 

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SUMMARY

Section Exemption to Sale of Purchase of Time Period of Purchase Quantum of Deduction Consequences if new assessee sold within 3 years CGAS Scheme
54 Individual or HUF Only Residential House (Long Term Capital Asset 3 years or more) New Residential House (Only 1 Residential House now allowed and that too in India due to amendment) If Purchased One years before or 2 years After  Or            If Constructed, Within 3 years Amt Invested or LTCG which ever is less STCA on Sale of New Asset (While Calculating Cost, Capital Gain exempt earlier will be reduced from COA Yes
54F Individual or HUF Only Any LTCA except Residential house New Residential House (Only 1 Residential House now allowed and that too in India due to amendment) If Purchased One years before or 2 years After      OR       If Constructed, Within 3 years Capital Gains* Amt Invested/net Consideration received.    Deduction cant be more than amount of capital gains STCA On  Sale of New Asset + LTCG which was exempt earlier also taxable Yes
54B Individual or HUF Only

Agricultural Land used for 2 years for agriculture by assessee/parent. In case of HUF, by member of HUF

(Both Long Term and Short Term Covered)

Purchase of New agricultural Land

(Urban or Rural)

Within 2 years Amt Invested or LTCG which ever is less

 

Rural Land

No STCA

Urban Land

STCA on Sale of New Asset (While Calculating Cost, Capital Gain exempt earlier will be reduced from COA

 

 

Yes
54D Any industrial Undertaking(Any factory) Compulsory Acquired Land,Building  used for 2 years for business of industrial undertaking New Land or Building Within 3 years Amt Invested or LTCG which ever is less STCA on Sale of New Asset (While Calculating Cost,Capital Gain exempt earlier will be reduced from COA Yes
54G Any industrial Undertaking(Any factory) shifting from Urban Area to Non Urban Ares Building or Plant Machinery land  used for 2 years for business of industrial undertaking New Land or Building,plant or machine Within 1 year before  OR 3 YEARS AFTER Amt Invested or LTCG which ever is less.(Amt Invested is Cost of Assets+ Cost of Shifitng) STCA on Sale of New Asset (While Calculating Cost,Capital Gain exempt earlier will be reduced from COA Yes
54GA Any industrial Undertaking(Any factory) shifting from Urban Area to Special Economic Zone(SEZ) Building or Plant Machinery land  used for 2 years for business of industrial undertaking New Land or Building,plant or machine Within 1 year before  OR 3 YEARS AFTER Amt Invested or LTCG which ever is less.(Amt Invested is Cost of Assets+ Cost of Shifitng) STCA on Sale of New Asset (While Calculating Cost,Capital Gain exempt earlier will be reduced from COA Yes
54EC Any assessee Any LTCA Specified Bonds of NHAI or RECL(These bonds have maturity of 3 years or more) Within 6 months

Lower of  

  1. Amt Invested  
  2. 50 lacs            
  3. Capital Gains (Earlier Max deduction which could be claimed in 1 year So people used to claim 50 lacs before march and 50 lacs after march,  now total  50 lacs could be claimed Max)
On sale of securities or loan taken on securities within 3 years, LTCA exempt earlier will be taxable. No
54GB Individual or HUF Only Residential House or Plot (Long Term Capital Asset 3 years or more)

Purchase of Shares of Eligible Company (Eligible Co. means New Indian Private limited or limited company esablished in year of claiming exemption

Individual or HUF should holds 50% or  more shares/voting power

before the due date of ITR Capital Gains* Amt Invested/net Consideration received.    Deduction cant be more than amount of capital gains If sold within 5 years,then Amt of LTCG exempt earlier will be taxable+Capital gain on sale of shares in hands of shareholder+capital gain in hands of company on sale of assets Yes

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  1. Income from Capital Gains
  2. Exemptions
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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