Can the tax on long term capital gain on sale of industrial land be avoided if the amount is reinvested in the purchase of another industrial land or there is some other way to avoid this tax on long term capital gain ? Kindly advise.
13 August 2021
As I understand, the exemption in case of industrial undertaking is available only on compulsory acquisition or shifting from urban to rural area or SEZ. So LTCG would be taxable. However, if you would invest in NHAI/REC bonds, you may be able to avail exemption u/s 54EC.
27 September 2021
In addition to what has been stated herein before, an deduction u/s. 54G of IT act can be availed, if the conditions stipulated therein gets satisfied.
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