Exemption Available To An Undertaking Which Shifts Its Base To A Special Economic Zone And In The Course Makes Gain On Transfer of Asset

ApplicabllityIndividual / HUF
Asset Transferred(a) Land and Building, Plant and Machinery or any right in Land or Building used by Industrial undertaking.
(b) Transfer as a result of shifting of such undertaking from Urban Area to Special Economic Zone (which may be situated in Urban or Any other area).
Nature of the AssetAny Capital Asset
New Asset to be acquired(a) Plant, Machinery for use in the Undertaking in the SEZ.
(b) Acquired Land and Acquired/Constructed Building for purpose of business in SEZ
(c) Shifted the undertaking to the SEZ.
(d) Expenses incurred for such purposes as specified by under the Scheme by the Central Government is also eligible for claiming exemption.
Amount to be invested in New AssetCapital Gain on Transfer
Amount of Exemption Lease of :(a) Amount invested in any Land and Building or any Plant and Machinery and Expenses incurred in relation to transfer, or (b) Capital Gain
Time Limit for InvestmentWithin One Year prior to the date of transfer or within three years after the date of transfer
Unutllized AmountAmount not utilized before the due date of filing return shall be kept in Capital Gain Account Scheme of a Nationalized Bank.
• The amount should be utilized within the prescribed period.
• Amount not utilized within the prescribed period shall be treated as LTCG of the previous year in which the prescribed period expires
Holding Period of New AssetThree Years from the date of acquisition
Sale of New Asset within holding periodShort Term Capital Gain computed as follows:
period Sale Consideration of New Asset
Less: Cost of Acquisition
Less: Capital Gains exempted u/s 54GA

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