[Section - 54GA] : Exemption of Capital Gain on transfer of assets in case of shifting of Industrial Undertaking from an urban area to any Special Economic Zone (SEZ)

 

W.e.f. A/y 2006-07 this exemption has been introduced to encourage industrial Undertaking situated in an urban area to shift to a Special Economic Zone. This exemption is expected to help those industrial undertaking which may shift their premises from an urban area to a Special Economic Zone.

To avail this exemption, following points are to be noted :

1.         There is a transfer of assets like land and building or any right in land and building, plant and machinery of an industrial undertaking situated in an urban area.

2.         The above mentioned transfer has been made with the intention of shifting of an industrial undertaking from an urban area to a Special Economic Zone.

3.         In connection with transfer of an industrial unit from an urban area to a Special Economic Zone, the assessee has set up an industrial unit in an Economic Zone within a period of one year before or 3 years after the date on which such transfer took place.

This means that the assessee has bought land or acquired or constructed a building, purchased plant and machinery or has shifted the original assets and has transferred the establishment from an urban area to a Special Economic Zone within the time frame of one year before and 3 years after the date on which the above mentioned transfer took place.

Amount of Exemption.

Least of following two amounts shall be the exemption

  1. Amount of Capital Gain earned on the transfer of Capital Asset.
  2. Amount spent on the purchase, construction etc. of new assets in a Special Economic Zone within specified time frame.

No transfer of new assets within 3 years.

New assets acquired by invested the amount of Capital Gain are not supposed to be transferred within 3 years from the date of their purchase, construction etc. and if transferred exemption allowed earlier u/s 54GA shall be withdrawn and so Capital Gain arising from such transfer and Capital Gain got exempted earlier, both will be taxed in the year in which transferred.

 
 

More Topics ... @ ' Capital Gain's

Capital Gain , Capital Assets & Property for Computing Capital Gain
Types of Capital Assets for Computing ‘Capital Gain’
Types of Capital Gains for Computing ‘Capital Gain’
Computation Of ‘Period Of Holding
 Transfer Of A Capital Asset [Section-2(47)]
Transactions Not regarded as ‘Transfer’ [Section-47]
Capital Gain is Deemed to be the Income of the Previous Year
Amount Received from insurer [Section-45(1A)] for Computing Capital Gain
Transfer of Capital Assets by a person to firm, AOP or Body Of Individuals (BOI) [Section 45(3)] for Computing Capital Gain
 Enhancement of Compensation on Compulsory Acquisition of Assets [Section-45(5)] for Computing Capital Gain
Sale of units Purchased for Deduction U/s 80 CCB [Section-45(6)]
Distribution of Assets by A Company in Liquidation for Computing Capital Gain
Capital Gain on Purchase by A Company of its Own Shares or Other  Securities [Section 46A]
DEEMED CAPITAL GAIN [Section 47A]
Method of Computing Capital Gain [Section 48]
Expenses Disallowed u/s Section 48 for Computing Capital Gain
Cases in which the Indexation of Cost is not to be done while Calculating long Term Capital Gain
 Computation of Capital Gain in Case of Non-Residents [Sec. 48 Proviso 1 ]
Determination of Cost of Acquisition for Computing Capital Gain.
Taxation of Gain on ‘Slump Sale’ for Computing Capital Gain

Special Provision for full Value of Consideration in certain cases (Section 50C] for Computing Capital Gain
Treatment of Advance Money Received and Forfeited (Section-51] for Computing Capital Gain
Cost of Acquisition of Goodwill [Section-55(2)(a)] for Computing Capital Gain
Cost of Acquisition of Shares [Section 55 (2) (v)] for Computing   Capital Gain
Capital Gains Exempted u/s 10
Capital Gains—Exempted u/s 54
 Capital Gain on Transfer of Self-Cultivated Agricultural Land in Urban   Areas [ Section 54 B]
Capital Gains on Compulsory Acquisition Of Land And Buildings [Section 54D]
 Capital Gain on Transfer of any Long Term Capital Asset [Section-54EC]
Exemption of Capital Gain on Transfer Of Long-Term Capital Assets in case of Investment In Residential House [Section 54F]
Capital Gain on Shifting of Industrial Undertaking from Urban Areas to Non-Urban Areas [Section 54G]
 Exemption of Capital Gain on transfer of assets in case of shifting of Industrial Undertaking from an urban area to any Special Economic Zone (SEZ) [Sec. 54GA]
Long term Capital Gain on Transfer of Residential Property if Net Consideration is Invested in the Equity Shares of an Eligible company [Section 54GB] [w.e.f. A.Y. 2013- 14 but upto A.Y. 201 7-1 8]
Reference to Valuation Officer [Section 55] towards Capital Gain
 TREATMENT OF CAPITAL LOSS [Section 74]
TAX ON CAPITAL GAINS

 
 
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