Gross Total Income

Section 54 of the Income Tax Act, 1961 provides tax exemption on long-term capital gains (LTCG) arising from the sale of a residential house property, if the proceeds are reinvested in another residential property. 1. Eligibility Conditions ✅ Asset Sold: Must be a residential house property (not commercial/land). ✅ Holding Period: Property must be held for >24 months (LTCG applies). ✅ Reinvestment: Must purchase/construct another residential house in India. […]

Section 54B of the Income Tax Act, 1961, provides a tax exemption on capital gains arising from the transfer of agricultural land, provided the proceeds are reinvested in another agricultural property within a specified period. 1. Eligibility Conditions ✔ Applicable to: Individuals and HUFs (not companies, LLPs, or firms). ✔ Asset Type: Only agricultural land used for farming for at least 2 years before transfer.

Section 54D of the Income Tax Act, 1961, provides tax exemption on capital gains arising from the compulsory acquisition of land or buildings used for industrial purposes, if the proceeds are reinvested in new industrial assets. 1. Eligibility Conditions ✅ Asset Type: Land or building used for industrial/business purposes (factory, warehouse, etc.). ✅ Acquisition Type: Must be compulsorily acquired by the government (not voluntary sale). ✅ Holding Period:

Section 54EC of the Income Tax Act, 1961, provides tax exemption on long-term capital gains (LTCG) from the sale of land or building if the proceeds are invested in specified bonds (e.g., NHAI, REC, or other government-approved bonds). 1. Eligibility Conditions ✅ Asset Sold: Must be land, building, or both (not applicable to other assets like shares, gold, etc.). ✅ Holding Period: Must be held for >24 months (LTCG applies).

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