17/08/2025
👉 This chart is basically a one-page ready reckoner for all Capital Gains exemptions (Sections 54–54GB). showing various exemptions available under different sections of the Income Tax Act, 1961 in respect of Capital Gains (updated as per Finance Act, 2024).
📌 Key Sections & Their Exemptions on Capital Gains
1. Section 54
Eligible Assessee: Individuals & HUF
Asset: Residential house property
Exemption: LTCG on sale of residential house, reinvested into another residential house in India.
Time Limit: Purchase within 1 year before or 2 years after transfer, construction within 3 years.
Max Exemption: Lower of LTCG amount or investment.
2. Section 54B
Eligible Assessee: Individuals & HUF
Asset: Agricultural land
Exemption: LTCG/STCG on sale of agricultural land, reinvested into agricultural land.
Time Limit: Purchase within 2 years from date of transfer.
3. Section 54D
Eligible Assessee: Any assessee
Asset: Land/building used for industrial undertaking (compulsory acquisition)
Exemption: LTCG reinvested in new industrial land/building.
Time Limit: Within 3 years of transfer.
4. Section 54EC
Eligible Assessee: Any assessee
Asset: Any LTCG from land/building
Exemption: Investment in notified bonds (NHAI, REC, PFC, IRFC).
Max Limit: ₹50,00,000
Time Limit: Within 6 months of transfer.
5. Section 54EE
Eligible Assessee: Any assessee
Asset: Any LTCG
Exemption: Investment in specified units (notified fund).
Max Limit: ₹50,00,000
Time Limit: Within 6 months.
6. Section 54F
Eligible Assessee: Individuals & HUF
Asset: Any LTCG (other than residential house property)
Exemption: Net consideration reinvested in residential house property.
Condition: Assessee should not own more than 1 residential house on date of transfer.
Time Limit: Purchase within 1 year before/2 years after, construction within 3 years.
7. Section 54G
Eligible Assessee: Any assessee
Asset: Plant/machinery/land/building in urban area, shifted to non-urban area.
Exemption: LTCG/STCG reinvested in new plant/machinery/building in non-urban area.
Time Limit: Within 1 year before or 3 years after transfer.
8. Section 54GA
Eligible Assessee: Any assessee
Asset: Plant/machinery/land/building in urban area, shifted to SEZ.
Exemption: LTCG/STCG reinvested in SEZ plant/machinery/building.
Time Limit: Within 1 year before or 3 years after transfer.
9. Section 54GB
Eligible Assessee: Individual & HUF
Asset: Residential property (house or plot of land)
Exemption: LTCG if invested in equity shares of eligible start-up company (which uses money for plant & machinery).
Time Limit: Before due date of ITR filing.
📌 Common Points:
If full capital gain is not invested, exemption is proportionate.
Capital Gains Account Scheme (CGAS): If investment not made before filing ITR, deposit required.
Withdrawal of Exemption: If new asset is transferred within 3 years, exemption gets revoked.
Maximum exemption cap: ₹10 crore (introduced by Finance Act, 2024).
