Section 54G - Capital gain on transfer of assets in cases of shifting of Industrial Undertakings from urban areas - Income Tax - Ready Reckoner - Income Tax

Section 54G - Capital gain on transfer of assets in cases of shifting of Industrial Undertakings from urban areas Assessee Any Person Nature of Asset Long-term capital asset / Short-term capital asset Asset to Transfer Transfer of plant machinery or land or building for shifting industrial undertaking from urban area to rural area New assets to be purchased or constructed Purchase / construction of new plant machinery, land or building in such rural area, or, Shifting original asset to that area, or, Incurring notified expenses Time limit Within 1 year before or 3 years after the date of transfer Conditions The transfer is effected in the course of shifting the undertaking from an urban area to any other area The capital gain is utilised one year before or 3 years after date of transfer for the specified purpose which includes:- Purchased new plant/ machinery and Acquired building or land Shifted the original asset and transferred the establishment to such area Incurred expenses on such other purposes as may be specified in scheme framed by Central Govt. New undertaking should not be in urban area The new asset should not be transferred within a period of 3 years from the date of its acquisition. Capital Gain Deposit Scheme Available Quantum of Deduction Lower of: - a) Capital Gains, or b) Cost of New Asset/Deposit Amount Consequence of Transfer 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.