Exemptions Available For Capital Gains On Shifting Of Industrial Undertaking From Urban To Rural Area

ApplicabllityIndividual / HUF
Asset TransferredLand and Building, Plant and Machinery used by Industrial undertaking and shifting of such undertaking from Urban area to Non-urban area
Nature of the AssetAny Capital Asset
New Asset to be acquiredLand, Building, Plant and Machinery for Industrial Undertaking in Nonurban area or to meet the expenses of shifting
Amount to be invested in New AssetCapital Gain on Transfer
Amount of ExemptionLeast of – (a) Amount invested in New Land and Building or New Plant and Machinery, 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 Amount(a)Amount not utilized before the due date of filing return shall be kept in Capital Gain Account Scheme of a Nationalized Bank.
(b) The amount should be utilized within the prescribed period.
(c) 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:
holding period Sale Consideration of New Asset
Less: Cost of Acquisition reduced by Capital Gains exempted u/s 54G

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