Capital gain exemption: Section 54EE

Section 54EE: Transfer Of Any Capital Assets And Investment In Notified Units Of Specified Fund.

Asset to be transferred: Any long-term capital asset.

Asset on which capital gain to be invested: Long-term Specified Asset.

1. ELIGIBLE ASSESSEE

  • All assessees.

2. CONDITIONS

  • The asset transferred should be a long-term capital asset.
  • The investment in long-term specified asset should be made within 6 months from the date of transfer.

3. LONG-TERM SPECIFIED ASSET:

  • A unit or units of such fund, as may be notified by the Central Government issued before the 1st day of April, 2019.

4. AMOUNT OF EXEMPTION

  • Amount invested in long-term specified assets (or) capital gain (or) 50 Lakhs (whichever is less).

5. WITHDRAWAL OF EXEMPTION

  • The long-term specified assets should not be transferred within a period of 3 years from the date of acquisition.
  • If transferred before the expiry of 3 years, the amount exempted earlier, shall be taxable as long-term capital gain in the PY in which the transfer took place.
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