{"id":6199,"date":"2023-09-03T18:24:45","date_gmt":"2023-09-03T18:24:45","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=6199"},"modified":"2025-03-09T14:43:47","modified_gmt":"2025-03-09T14:43:47","slug":"exemption-of-capital-gain-section-54-to-54f","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/exemption-of-capital-gain-section-54-to-54f\/","title":{"rendered":"Exemption of Capital Gain [Section 54 to 54F]"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6022\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/05\/LCS.jpg\" alt=\"Long-term capital gains or losses\" width=\"972\" height=\"679\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/05\/LCS.jpg 663w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/05\/LCS-300x210.jpg 300w\" sizes=\"(max-width: 972px) 100vw, 972px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69da7fd963051\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69da7fd963051\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/exemption-of-capital-gain-section-54-to-54f\/#Exemption_of_Capital_Gain_Section_54_to_54F\" title=\"Exemption of Capital Gain [Section 54 to 54F]\">Exemption of Capital Gain [Section 54 to 54F]<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/exemption-of-capital-gain-section-54-to-54f\/#Capital_Gains_Account_Scheme\" title=\"Capital Gains Account Scheme\">Capital Gains Account Scheme<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/exemption-of-capital-gain-section-54-to-54f\/#Tax_Rates_on_Capital_Gains_on_Transfer_of_Securities_For_Individuals_and_HUFs\" title=\"Tax Rates on Capital Gains on Transfer of Securities (For Individuals and HUFs) \n\">Tax Rates on Capital Gains on Transfer of Securities (For Individuals and HUFs) \n<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/exemption-of-capital-gain-section-54-to-54f\/#Amendments_in_Section_86_of_the_Income-Tax_Bill_2025\" title=\"Amendments in Section 86 of the Income-Tax Bill, 2025\">Amendments in Section 86 of the Income-Tax Bill, 2025<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Exemption_of_Capital_Gain_Section_54_to_54F\"><\/span><a href=\"https:\/\/carajput.com\/archives\/various-exemptions-available-in-respect-of-capital-gains.pdf\"><span style=\"color: #000080;\"><strong>Exemption of Capital Gain [Section 54 to 54F]<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"height: 1273px;\" width=\"907\">\n<tbody>\n<tr>\n<td width=\"48\"><strong>S.No<\/strong><\/td>\n<td width=\"150\"><strong>Particulars<\/strong><\/td>\n<td width=\"110\"><strong>Section 54<\/strong><\/td>\n<td width=\"106\"><strong>Section 54B<\/strong><\/td>\n<td width=\"104\"><strong>Section 54D<\/strong><\/td>\n<td width=\"113\"><strong>Section 54EC<\/strong><\/td>\n<td width=\"85\"><strong>Section 54F<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"48\"><strong>1.<\/strong><\/td>\n<td width=\"150\">Eligible Assessee<\/td>\n<td width=\"110\">Individual\/ HUF<\/td>\n<td width=\"106\">Individual\/ HUF<\/td>\n<td width=\"104\">Any assessee<\/td>\n<td width=\"113\">Any assessee<\/td>\n<td width=\"85\">Individual\/ HUF<\/td>\n<\/tr>\n<tr>\n<td width=\"48\"><strong>2.<\/strong><\/td>\n<td width=\"150\">Asset transferred<\/td>\n<td width=\"110\">Residential House<\/td>\n<td width=\"106\">Urban agricultural Land<\/td>\n<td width=\"104\">L&amp;B forming part of as industrial undertaking<\/td>\n<td width=\"113\">Land or Building Or Both (LTCA)<\/td>\n<td width=\"85\">Any LTCA other than residential House<\/td>\n<\/tr>\n<tr>\n<td width=\"48\"><strong>3.<\/strong><\/td>\n<td width=\"150\">Qualifying Asset in which CG has to be invested<\/td>\n<td width=\"110\">One\/ Two Residential House in India, at the option of asssessee, where CG does not exceed \u20b92 Crore<\/td>\n<td width=\"106\">Land for being used for Agricultural purposes (Urban\/ Rural)<\/td>\n<td width=\"104\">Land and Building<\/td>\n<td width=\"113\">Bonds of NHAI or RECL or any other bond notified by CG (Redeemable<\/p>\n<p>after 5 years)<\/td>\n<td width=\"85\">One Residential House situated in india.<\/td>\n<\/tr>\n<tr>\n<td width=\"48\"><strong>4.<\/strong><\/td>\n<td width=\"150\">Time Limit For purchase<\/td>\n<td width=\"110\">Purchase before 1 year or 2 year after the date of transfer or construct within 3 years<\/td>\n<td width=\"106\">Purchase within a period of 2 years after the date of transfer.<\/td>\n<td width=\"104\">Purchase within a period of 3 years after the date of transfer.<\/td>\n<td width=\"113\">Purchase within a<\/p>\n<p>period of 6 months after the date of transfer<\/td>\n<td width=\"85\">Purchase before 1 year or 2 year after the date of transfer or construct within 3 years<\/td>\n<\/tr>\n<tr>\n<td width=\"48\"><strong>5.<\/strong><\/td>\n<td width=\"150\">Amount of Exemption<\/td>\n<td width=\"110\">Cost of New<\/p>\n<p>Residential house or 2 houses, as the case may be or CG whichever is lower is exempt<\/td>\n<td width=\"106\">Cost of new agricultural land or CG, whichever is lower is exempt<\/td>\n<td width=\"104\">Cost of new asset or CG whichever is lower is exempt<\/td>\n<td width=\"113\">CG or amt. invested in specified bonds, whichever is lower<\/td>\n<td width=\"85\">Cost of New residential house &gt;= Net sales consideration of original asset, entire Capital gain is exempt.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6200\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/09\/photo_2023-08-30_12-49-14.jpg\" alt=\"Capital Gains \" width=\"1260\" height=\"823\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/09\/photo_2023-08-30_12-49-14.jpg 1260w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/09\/photo_2023-08-30_12-49-14-300x196.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/09\/photo_2023-08-30_12-49-14-1024x669.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/09\/photo_2023-08-30_12-49-14-768x502.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/09\/photo_2023-08-30_12-49-14-800x523.jpg 800w\" sizes=\"(max-width: 1260px) 100vw, 1260px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Capital_Gains_Account_Scheme\"><\/span><span style=\"color: #000080;\"><strong>Capital Gains Account Scheme<\/strong><\/span><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4998\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/09\/Capital-Gains-Account-Scheme..jpeg\" alt=\"Capital Gains Account Scheme.\" width=\"1280\" height=\"650\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/09\/Capital-Gains-Account-Scheme..jpeg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/09\/Capital-Gains-Account-Scheme.-300x152.jpeg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/09\/Capital-Gains-Account-Scheme.-1024x520.jpeg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/09\/Capital-Gains-Account-Scheme.-768x390.jpeg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/09\/Capital-Gains-Account-Scheme.-800x406.jpeg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>The government, in order to encourage reinvestment of the capital gains made on the sale of capital assets by the seller, has provided with relief from capital gains tax if such capital gain is re-invested in certain specified assets within a specified time limit under section 54 to 54GB.<\/li>\n<li>Capital Gains Account Scheme was introduced in 1988 by the Central Government.<\/li>\n<li>As mentioned above, the time limit available to the depositor for re-investment and avail the exemption, in many cases is longer than the due date to file the return of income. In such cases, the taxpayer is given an option of depositing such under-utilised capital gains in \u2018Capital Gains Account\u2019 introduced under Capital Gains Account Scheme.<\/li>\n<li>Any capital gain invested in Capital Gains Account Scheme will be eligible for capital gain exemption as it would in case of re-investment.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Rates_on_Capital_Gains_on_Transfer_of_Securities_For_Individuals_and_HUFs\"><\/span><span style=\"color: #000080;\"><strong>Tax Rates on Capital Gains on Transfer of Securities (For Individuals and HUFs)<br \/>\n<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6646\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/301.jpg\" alt=\"\" width=\"986\" height=\"2175\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/301.jpg 572w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/301-136x300.jpg 136w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/301-464x1024.jpg 464w\" sizes=\"(max-width: 986px) 100vw, 986px\" \/> <img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6647\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/302.jpg\" alt=\"\" width=\"913\" height=\"1301\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/302.jpg 550w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/302-210x300.jpg 210w\" sizes=\"(max-width: 913px) 100vw, 913px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Amendments_in_Section_86_of_the_Income-Tax_Bill_2025\"><\/span><span style=\"color: #000080;\"><strong><em>Amendments in Section 86 of the Income-Tax Bill, 2025<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><em>Extended Reinvestment Window for Capital Gains Exemption for Taxpayer who sale the Capital Assets :<\/em><\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong><em>Previous Rule (Section 54F, IT Act 1961)<\/em><\/strong><\/span><em><span style=\"color: #000080;\">:<\/span> Taxpayers had one year before or one year after the sale to reinvest in a new residential property.<\/em><\/li>\n<\/ul>\n<ul>\n<li><span style=\"color: #000080;\"><strong><em>New Rule (Section 86, Proposed IT Bill 2025)<\/em><\/strong><\/span><em><span style=\"color: #000080;\">:<\/span> The reinvestment period is now one year before or two years after the sale.If constructing a house, the period remains three years from the date of transfer.<\/em><\/li>\n<\/ul>\n<ul>\n<li><strong><em><span style=\"color: #000080;\">Applicability<\/span> <\/em><\/strong><em>This applies to capital gains from long-term assets (excluding residential houses). Taxpayers can claim exemption from capital gains tax by reinvesting the proceeds into a new residential property.<\/em><\/li>\n<\/ul>\n<ul>\n<li><span style=\"color: #000080;\"><strong><em>Impact of the Amendment : <\/em><\/strong><\/span><em>Extending the reinvestment window to two years provides greater flexibility to taxpayers. Aligns the capital gains exemption provisions with real estate market dynamics, allowing more time for reinvestment decisions.<\/em><\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/publications\/income-tax-rate-in-case-of-capital-gain-regulation-in-india.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/income-tax-rate-in-case-of-capital-gain-regulation-in-india.pdf\"><strong>Income tax rate in case of capital Gain regulation in India<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/carajput.com\/publications\/ready-recknor-for-calculating-capital-gains-tax-for-all-class-of.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/ready-recknor-for-calculating-capital-gains-tax-for-all-class-of.pdf\"><strong>Ready Recknor for calculating capital gains tax for all class of Assets.<\/strong><\/a><\/p>\n<p><span style=\"color: #000080;\"><strong>Written by the IFCCL -Team<\/strong><\/span><\/p>\n<p>IFCCL provides our clients adequate guidance and assistance as they deal with internal audits as well as government audits of various corporate problems (business incorporation, statutory audits, ROC compliance, and company winding-up) in India. Please get in contact with us if you have any questions or would need more information concerning with Capital gain.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Exemption of Capital Gain [Section 54 to 54F] S.No Particulars Section 54 Section 54B Section 54D Section 54EC Section 54F 1. Eligible Assessee Individual\/ HUF Individual\/ HUF Any assessee Any assessee Individual\/ HUF 2. Asset transferred Residential House Urban agricultural Land L&amp;B forming part of as industrial undertaking Land or Building Or Both (LTCA) Any &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[142],"tags":[734],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/6199"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=6199"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/6199\/revisions"}],"predecessor-version":[{"id":8764,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/6199\/revisions\/8764"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=6199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=6199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=6199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}