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Deduction u/s 54d/54g and 54ga

rishabhsharma (Article Assistant) (140 Points)

18 June 2019

Hello all,

In ITR-2 for AY 2019-20, in Sr. no. A(1) From sale of land or building or both, we can only claim deduction u/s 54B.

but in ITR-3 for AY 2019-20, in Sr. no. A(1) From sale of land or building or both, we can claim deduction u/s 54B/54D/54G/54GA.

why deduction u/s 54D/54G/54GA is not available in case of ITR-2?

Thanks

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178007 Points)
Replied 19 June 2019

Because the income/s from which these deductions are eligible, cannot be declared in ITR 2; For that only ITR 3 is applicable.

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rishabhsharma (Article Assistant) (140 Points)
Replied 19 June 2019

Dear Sir,

Difference between ITR-2 and ITR-3 is of Business Income.

so do we need to have business income to claim deduction u/s 54D/54G/54GA?

i just cant understand if we are claiming deduction under Schedule CG, why we need any other income to claim these deductions..

Thank you.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178007 Points)
Replied 20 June 2019

54D. (1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer by way of compulsory acquisition under any law of a capital asset, being land or building or any right in land or building, forming part of an industrial undertaking belonging to the assessee which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee for the purposes of the business of the said undertaking .......

54G ...Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area.

54GA Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone.

For claiming any capital gains exemption under these section, the assessee must also be having income which is derived from head PGBP, and as such ITR2 not applicable to them.

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