Exemption of Capital Gains

1. Capital gain on transfer of units of US 64 exempt if transfer takes place on or after 1.4.02 u/s 10(33) w.r.e.f. A.Y. 2005-06.

2. Long-term capital gain on eligible equity shares exempt If the shares are acquired within a certain period u/s 10(36) w.e.f. A.Y. 2006-07. these assets must have been acquired on or after 1.3.03 but before 1.3.04 and held for a period of more than 12 months.

3. Exemptlon of capital gains on compensation received on compulsory acquisition of agricultural land situated within specified urban limits u/s 10(37) w.r.e.f. A.Y. 1.4.05.
(a) Where the compulsory acquisition has taken place before 1.4.05 but the compensation is received after 31.3.05, it shall be exempt.
(b) If the part of the original compensation in the above case has already been received before 1.4.05, then the exemption shall not be available even though the original compensation is received after 31.3.05.
(c) If enhanced compensation is received on or after 1.4.05 against agricultural land compulsorily acquired before 1.4.05 shall be exempt.

4. Exemption of long term capital gain arising from sale of shares and units u/s 10(38) w.e.f.  1.10.05. Any income arising on or after 1.10.05 from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund shall be exempted provided:
(a) Such equity shares are sold through recognized stock exchange, whereas units of an equity oriented fund may either be sold through the recognized stock exchange or may be sold to the mutual fund.
(b) Such transaction is chargeable to securities transaction tax.

5. Exemption of capital gain on transfer of an asset of an undertaking engaged in the business of generation, etc of power u/s 10(41), provided such transfer is effected on or before 31.3.07 to the Indian company notified u/s 80 IA(v)(a).

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