Home
Home Page
Tax
Income Tax & Other Taxes
Forms
Fillable Forms
Finance
Personal Finance
PPF
PPF Calculator, forms, Rules & Info
SSY
SSY Calculator, form, Rules & Info
Widgets
Complete code / Embed code
Misc.
Misc. scripts, calculators & utilities

Home ❯ Tax ❯ Info ❯ Deductions Capital Gains

Deductions Allowable from Capital Gains

Expenditure incurred wholly and exclusively in connection with transfer of capital asset

Available to : All assessees Section 48(i)

Cost of acquisition of capital asset and of any improvement thereto (indexed cost of acquisition and indexed cost of improvement, in case of long-term capital assets)

Available to : All assessees Section 48(ii)

Investment of long-term capital gains, arising from sale of residential house* or land appurtenant thereto, in purchase/construction of one new residential house .

* One residential house in India with effect from assessment year 2015-16.

Exemption : Amount invested in one new house or capital gain, whichever is lower (Subject to certain conditions and limits).

Available to : Individual and HUFSection 54

Investment of capital gains, arising from transfer of land used for agricultural purposes by an individual or his parents or a HUF, in other agricultural land.

Exemption : Amount invested in agricultural land or capital gains, whichever is lower (Subject to certain conditions and limits).

Available to : Individual and HUF

Capital gains on compulsory acquisition of land or building forming part of an industrial undertaking invested in purchase/construction of other land/building for shifting/re-establishing said undertaking or setting up new industrial undertaking

Available to : Any assessee. (subject to certain conditions and limits)Section 54D

Net consideration on transfer of long-term capital asset made before 1-4-2000 invested in specified bonds, debentures, shares of a public company or units of notified mutual funds

Available to : Any assessee (subject to certain conditions and limits). Section 54EA

Long-term capital gains on transfer of any long-term capital asset made be-fore 1-4-2000 invested in specified long-term assets

Available to : Any assessee (subject to certain conditions and limits)Section 54EB

Long-term capital gains invested in long-term specified asset (bond redeemable after 3 years) (maximum investment in a financial year is ₹ 50 lakhs)* issued by National Highways Authority of India; or by the Rural Electrification Corporation Limited

* With effect from assessment year 2015-16 limit of ₹ 50 lakhs applies to total amount invested during financial year in which original asset is transferred and in subsequent financial year.

Available to : Any assessee (subject to certain conditions and limits)Section 54EC

Long-term capital gains on transfer before 1-4-2006 of certain listed securities or units invested in equity shares forming part of an eligible issue of capital

Available to : Any assessee (subject to certain conditions and limits)Section 54ED

Long-term capital invested in long-term specified assets being units of such fund as may be notified by Central Government to finance start-ups

Available to : Any assesseeSection 54EE

Investment of long-term capital gains, arising from transfer of any long term asset other than a residential house property, in one new residential house property, provided that on the date of transfer the assessee should not own more than one residential house property.

Exemption : Amount invested in one new asset X capital gains/ Net Consideration (Subject to certain conditions and limits).

Available to : Individual and HUFSection 54F

Capital gain on transfer of machinery, plant, land or building used for the purposes of the business of an industrial undertaking situate in an urban area (transfer being effected for shifting the undertaking to a non-urban area) invested in new machinery, plant, building or land, in the said non-urban area, expenses on shifting, etc. (subject to certain conditions and limits)

Available to : Any assesseeSection 54G

Capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone

Available to : All assessees (subject to certain conditions and limits)Section 54GA

Investment of long-term capital gains arising from transfer of long-term capital asset, being a residential property, for subscribing the equity shares of an eligible company and such company has, within one year from the date of subscription, utilized this amount for purchase of specified new asset

Note:
1. W.e.f. April 1, 2017, eligible start-up is also included in definition of eligible company.
2. Provisions of this section shall not apply to any transfer of residential property made after March 31, 2017. However, in case of an investment in eligible start-up, the residential property can be transferred up to March 31, 2019.

Exemption : Amount invested in new asset by eligible Co. X Capital gains/Net Consideration (subject to certain conditions and limits).

Available to : Individual and HUFSection 54GB

Disclaimer : This site does not make any claim that the information provided on its pages is correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.
In case of any doubt / clarification, please visit the official website of Income Tax Department.

Updated : Mar 08, 2021

Sitemap Privacy Contact