Capital Gains

Section 54F of the Income Tax Act, 1961, provides tax exemption on long-term capital gains (LTCG) from the sale of any capital asset (except residential house property), if the proceeds are reinvested in one residential property. 1. Eligibility Conditions ✅ Asset Sold: Any long-term capital asset (e.g., land, shares, gold, commercial property) except a residential house. ✅ Holding Period: Must be held for >24 months (for immovable property) or >12 […]

Section 54G of the Income Tax Act, 1961, provides tax exemption on capital gains arising from the transfer of plant, machinery, land, or building when an industrial undertaking is relocated from an urban area to a rural/non-urban area. 1. Eligibility Conditions ✅ Applicable to: Businesses relocating industrial units (manufacturing, processing, etc.). ✅ Asset Type: Land or building used for the industrial undertaking. Plant, machinery, or

Section 54GA of the Income Tax Act, 1961, provides tax exemption on capital gains when a business relocates its industrial undertaking from an urban area to a Special Economic Zone (SEZ). 1. Key Features ✅ Applicable to: Businesses shifting plant, machinery, land, or building from an urban area to an SEZ. ✅ Exemption: Full capital gains tax relief if proceeds are reinvested in: New land, building, plant,

Section 54GB of the Income Tax Act, 1961, provides tax exemption on long-term capital gains (LTCG) from the sale of a residential property, if the proceeds are reinvested in the equity shares of an eligible manufacturing SME (Small or Medium Enterprise). This provision aims to promote investment in India’s manufacturing sector while offering tax relief to individuals/HUFs 15. 1. Key Eligibility Conditions ✅ Applicable

Section 54H of the Income Tax Act, 1961, provides an extension of the reinvestment period for claiming capital gains exemptions under Sections 54, 54B, 54D, 54EC, 54F, and 54GB when the original asset is compulsorily acquired by the government. This provision ensures taxpayers don’t lose exemptions due to delays in receiving compensation. 1. Key Provisions ✅ Applicable to: Assets compulsorily acquired under

Overview of STCG under Section 111A Short-term capital gains (STCG) arising from the transfer of equity shares and units of equity-oriented mutual funds are taxed under Section 111A of the Income Tax Act, 1961. This section provides for a concessional tax rate on such gains, subject to certain conditions. Key Features of Section 111A Applicability

Overview of Section 112 Section 112 of the Income Tax Act, 1961 governs the taxation of long-term capital gains (LTCG) for assets not covered under Section 112A. This includes various capital assets such as unlisted securities, immovable property, zero-coupon bonds, and other long-term capital assets. Key Features of Section 112 Applicable Assets Section 112 applies

Here’s a detailed breakdown of the tax rates on long-term capital gains (LTCG) for assets not covered under Section 112A (i.e., non-equity assets like real estate, unlisted shares, debt funds, etc.), incorporating the latest updates from Budget 2024 and applicable provisions under Section 112 of the Income Tax Act: 1. Applicable Assets Under Section 112 Listed securities(where STT is not paid on

Overview of Section 112A Section 112A of the Income Tax Act, 1961 governs the taxation of long-term capital gains (LTCG) arising from the transfer of specified securities, including: Equity shares of listed companies Units of equity-oriented mutual funds Units of business trusts This section was introduced in Budget 2018 (effective from FY 2018-19) to replace

Section 115F of the Income Tax Act, 1961, provides a tax exemption to Non-Resident Indians (NRIs) on long-term capital gains (LTCG) arising from the transfer of foreign exchange assets if the proceeds are reinvested in specified assets within India. This provision is designed to encourage NRIs to repatriate and reinvest their foreign earnings in India while offering tax relief. Key Features of Section 115F