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Section 54g

Spirit (Learner) (450 Points)

13 November 2013

IN SECTION 54G

THE CODITION FOR CLAIMINFG EXAENMPTION -

THE CAPITAL GAIN IS UTILISED WITHIN

1 YEAR BEFORE OR

3 YEARS AFTER THE DATE OF TRANSFER FOR THE SPECICIFIC PURPOSE..

I GOT 2ND CONDITION THAT IS 3 YEAR BEFORE BUT WHAT IT MEANS

"1 YEAR BEFORE" ???

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(Guest)

It means that if the assessee has already purchased specified asset 1 yr before the CG transaction also the CG will be exempt. If u read the section it does not say CG 'utilised' but it mentions purchase of the specified asset.

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Spirit (Learner) (450 Points)
Replied 17 November 2013

It means if i already having investment 1 yr before in particular CG scheme. the current year C.G will exempt ??

(Guest)

Yes, Within a period of 1 year before or 3 years after the date of transfer if the assessee has purchased machinery, plant or acquired building or land or constructed building and completed shifting to the new area u/s 54G, the capital gain to that extent is exempt

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