SECTION 54G: CAPITAL GAIN ARISING ON TRANSFER OF ASSETS IN CASES OF SHIFTING OF INDUSTRIAL UNDERTAKING FROM THE URBAN AREA
| SCOPE | Transfer of asset being plant, machinery, land & building by any assessee in cases of shifting of industrial undertaking from the urban areas to any other area |
| TYPE OF CAPITAL GAIN | Any capital gain – short-term or long-term |
| AMOUNT EXEMPTION OF | If capital gain < amount invested = full amount If capital gain > amount invested = difference is taxable In other words capital gain shall be exempt to the extent it is spent for the specified purpose |
| CONDITIONS |
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| IF AMOUNT NOT UTILIZED TILL FILING OF RETURN U/S 139(1) | Deposit in Nationalized bank under the capital Gains Deposit A/c scheme. |
| IF DEPOSIT NOT UTILISED | Unutilized amount taxable as LT or ST in the previous year in which three years from the date of transfer of original asset expires. |
| CONSEQUENCES OF TRANSFER BEFORE THREE YEARS | The capital gain, which was exempt earlier, shall be deducted from the cost of acquisition of the new asset for computation of capital gain in respect of transfer of new asset. |
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