Section 54D - Capital gain on compulsory acquisition of land and buildings forming part of an industrial undertaking - Income Tax - Ready Reckoner - Income Tax

Section 54D - Exemption on capital gain on compulsory acquisition of land and buildings forming part of an industrial undertaking Assessee Any Person Nature of Asset Long-term capital asset / Short-term capital asset Asset to Transfer Compulsory acquisition of land or building which was used by the assessee in the business/Industrial Undertaking at least for a period of 2 years immediately preceding the date of compulsory acquisition. New assets to be purchased or constructed New land or building for the Industrial undertaking Time limit Purchase: Within 3 years from the date of receipt of compensation. Capital Gain Deposit Scheme Available, to be deposit before due date of ROI u/s 139(1) . Quantum of Deduction Lower of: - a) Capital Gains, or b) Cost of New Asset/Deposit Amount in the scheme Transfer Condition If such New Asset transferred within 3 Years from the date of purchase or construction, then Cost of Acquisition of New Asset to be reduced by capital gain exemption availed.