Important concept

• Sec 2(14) – Capital Asset

A capital asset means –
a. Property of any kind held by the assessee, whether or not connected with the business or profession
b. Any securities held by a Foreign Institutional Investor which has invested in such securities in accordance
with the SEBI regulations
c. Any unit linked insurance to which exemption u/s 10(10D) does not apply on account of
i. Any sum received on or after 1.4.2021, if the amount of premium payable for any of the PY during the term of such policy exceeds
Rs 2,50,000 or
ii. Where a person subscribed to more than one ULIP and the aggregate premium paid on all such policies exceeds Rs 2,50,000 in any
PY.
iii. However, these restrictions shall not apply to any sum received upon death of a person.
 Important concept
However, it does not include
i. Stock in trade (does not include above clause b securities)
ii. Personal effects – movable property held for personal use by the assessee of his family dependent on him but
excludes jewellery, archaeological collections, drawings, paintings, sculptures or any work of art
iii. Rural agricultural land
iv. Specified Gold Bonds – 6.5% Gold Bonds, 1977 or 7% Gold Bonds, 1980 or National Defence Gold Bonds,
1980 issued by Central Government
v. Special Bearer Bonds, 1991 issue by Central Government
vi. Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 or Deposit Certificates issued under the
Gold Monetisation Scheme, 2015 notified by Central Government
 Important concept
• Jewellery
It includes –
i. Ornaments made of silver, gold, platinum or any other precious metal or any alloy containing one or more of
such precious metals whether or not containing any precious or semi precious stones and whether or not
worked or sewn into any wearing apparel
ii. Precious and semi – precious stones whether or not set in any furniture, utensil or other article or worked or
sewn into any wearing apparel
• Sec 2(42A) – Short Term Capital Asset
It means a capital asset held by an assesee for not more than 36 months immediately preceding the date of
transfer.
• Sec 2(29A) – Long Term Capital Asset
It means a capital asset which is not a short term capital asset.
 Important concept
Period of Holding

Type of capital asset Period of Holding Nature of capital asset

Listed securities, Units of UTI, Units of Equity Less than or equal to 12 Short Term
Oriented Fund and Zero coupon bonds months

More than 12 months Long Term

Unlisted shares and Immovable Property being land Less than or equal to 24 Short Term
and building or both months

More than 24 months Long Term

Unit of Debt oriented Funds, Unlisted securities other Less than or equal to 36 Short Term
than shares, All other capital assets months

More than 36 months Long Term

 Important concept
Determination of Period of Holding in certain cases
Situation Period of Holding
By Amalgamation/Demerger Period for which the shares where held in the
amalgamating/demerged company shall also be
included
Shares including rights issue and bonus issue Period shall be reckoned from the date of the
allotment of shares
Renouncement of right to subscribe to any financial asset Period shall be reckoned from the date of offer of
such right
Sweat Equity shares or specified shares Period shall be reckoned from the date of allotment
or transfer of such equity shares
Purchase of securities through stock exchange Period shall be reckoned from the date of purchase
of securities *
Equity shares in a company/trading or clearing rights of a Period of holding for which the person was member
recognized stock exchange allotted pursuant to of the recognized stock exchange immediately prior
demutualization or corporatization of a recognized stock to demutualization or corporatization shall be
exchange in India included
 Important concept
Determination of Period of Holding in certain cases
Situation Period of Holding
Shares of a company which are acquired by the NR on Period shall be reckoned from the date on which a
redemption of GDRs held by such NR request for such redemption is made
Shares and Debentures of a company which becomes the Period shall include the period for which the bond,
property of the assessee in the circumstances mentioned in debenture or deposit certificate as the case maybe
Sec 47(x) (Conversion of bonds/debentures into shares or was held prior to conversion
debentures of same company)
Equity shares in a company which becomes the property of Period shall include period for which the preference
the assessee in the circumstances mentioned in Sec 47(xb) shares were held prior to conversion
(Conversion of preference shares to equity shares)
Shares held in a company in liquidation Period subsequent to the date on which the company
goes into liquidation shall be excluded
By way of partition of HUF, gift, will, inheritance, Period of holding of the previous owner is also to be
distribution of assets on liquidation, transfer to a revocable included
or irrevocable trust
Inventory of business is converted or treated as a capital Period from the date of conversion or treatment as a
asset capital asset shall be considered
 Important concept
*Additional points
CBDT has clarified the period of holding relating to shares and securities
• If securities are transacted through stock exchanges, then the date on the Broker's Note shall be treated as the
date of transfer.
• In case the transactions takes place directly between the parties and through a stock exchange, then the date of
contract of sale as declared by both parties shall be treated as the date of transfer
• In case where the shares are purchased in several lots but the delivery is made in on single lot and again they
are sold in part, In such a case FIFO method shall be applied for determining the period of holding
 Important concept
• Sec 2(47) – Transfer
Transfer in relation to a capital asset includes
i. Sale, exchange or relinquishment of a capital asset
ii. Extinguishment of any rights therein
iii. Compulsory acquisition of a capital asset under any law
iv. Conversion or treatment of a capital asset into/as stock in trade
v. The maturity or redemption of a zero coupon bond
vi. Any transaction involving the allowing of the possession of any immovable property to be taken or retained
in part performance of a contract
vii. Any transaction whether by way of acquiring shares in or by way of becoming a member of a co-operative
society, company or other association of persons or by way of any agreement or arrangement or in any other
manner which has the effect of transferring or enabling the enjoyment of an immovable property
 Transactions not to be treated as transfer – Sec 47
• Distribution of a capital asset on total or partial partition of HUF
• Transfer of a capital asset by way of a gift or under will or an irrevocable trust
• Transfer of capital assets being any work of art, archaeological, scientific or art collection,
book, manuscript, painting, drawing, photograph or print, to the Government or a University
or The National Museum, National Archives, National Art Gallery or such other public
museum or institution notified by the Central Government
• Transfer of land of a sick industrial company managed by its worker’s co-operative. Eligible
for exemption only if transfer is made in the PY when the company became sick ending with
the PY in which the net worth of the company becomes equal to the accumulated losses.
• Transfer of a capital asset being the membership right held by a member of a recognized
stock exchange in India for acquisition of shares and trading or clearing rights acquired by
such member in that recognized stock exchange in accordance with a scheme for
demutualization or corporatization approved by SEBI
• Transfer of a capital asset in a transaction of reverse mortgage
• Transfer of a capital asset being a share of a special purpose vehicle to a business trust in
exchange of units allotted by that trust to the transferor
 Transactions not to be treated as transfer – Sec 47
• Transfer between holding and subsidiary company is exempt if the holding company or its
nominees hold the whole share capital and the transferee company is Indian Company.
Note: exemption shall be withdrawn if within a period of 8 years from the date of transfer if the
holding company does not hold whole share capital or the transferee company converts the
capital asset into stock in trade. In such case the assessment order of the year of original
transfer will be re-opened and reassessed to include the capital gain tax.
• Transfer of capital assets in a scheme of amalgamation if the amalgamated company is Indian
Company. All the assets and liabilities need to be transferred and shareholders holding not
less than 75% in value of the shares other than the shares already held.
• Transfer of capital assets being shares held in a Indian Company in a scheme of
amalgamation by the amalgamating foreign company to the amalgamated foreign company
will be exempt if at least 25% of the shareholders of the amalgamating foreign company
continue to be the shareholders in the amalgamated company and such transfer does not
attract tax on capital gains in the country in which the amalgamating company is
incorporated.
• Transfer of capital assets in a scheme of amalgamation of Banking companies
 Transactions not to be treated as transfer – Sec 47
• Transfer of capital assets being shares held by a shareholder in the amalgamating company is
exempt if The amalgamated company is Indian company and the transfer is made in
consideration of allotment to him of any shares in amalgamated company
• Transfer of capital assets in a scheme of demerger is exempt if the resulting company is
Indian Company
• Transfer of capital assets being share or shares held in the Indian company by the demerger
foreign company to the resultant foreign company will be exempt if the shareholders holding
not less than 75% of the in value of the shares of the demerged foreign company continue to
remain shareholders in the resultant foreign company and such transfer does not attract tax
on capital gains in the country in which the demergered company is incorporated.
• Transfer of shares by the resultant company to the shareholders of the demerged company in
consideration of demerger
• Transfer of capital asset by the predecessor co-operative bank to a successor co-operative
bank or the converted banking company and the transfer of shares held by the shareholders in
lieu of the shares of the successor co-operative bank in s scheme of re-organization
• Merger of similar schemes/plans of Mutual Funds
 Transactions not to be treated as transfer – Sec 47
• Exemption to India infrastructure finance company limited will be given if the transfer of
capital asset by India infrastructure is made to an institution established for financing the
infrastructure and development, set up under an Act of Parliament and notified by Central
Government.
• Transfer of capital asset between 2 public sector companies will be exempt if approved by
Central/State Government.
• Merger of similar schemes/plans of Mutual Funds
 Transactions not to be treated as transfer – Sec 47
• Transfer on account of conversion of firm into company will be exempt if all the assets and
liabilities are taken over by the new company, all the partners become the shareholders in the
company in proportion to their capital accounts, the partners of the firm do not receive any
other consideration other than shares, the aggregate holding of the partners is not less than
50% and it continues to be so for a period of 5 years from the date of conversion. The
exemption if withdrawn, the capital gain is chargeable to tax in the year of withdrawal
• Transfer on account of conversion of proprietary concern into a company will be exempt
if all the assets and liabilities are taken over by the new company, the shareholding of the
proprietor is not less than 50% and continues to be so for 5 years from the date of conversion
and the sole proprietor receives no other consideration. The exemption if withdrawn, the
capital gain is chargeable to tax in the year of withdrawal
 Transactions not to be treated as transfer – Sec 47
• Transfer of capital assets on account of conversion of private company/unlisted public
company into LLP and also the transfer of shares held by shareholders will be exempt if
i. All assets and liabilities have been taken over
ii. All shareholders before conversion become partners in the LLP and their capital contribution and profit
sharing ratio is in the same proportion as their shareholding
iii. No other consideration is received by the shareholders
iv. The aggregate profit sharing ratio shall be not less than 50% and it should continue to be so for 5 years
from the date of conversion
v. In any of the 3 PYs preceding the year of conversion total sales/turnover shall not exceed Rs 60 lacs and
the total value of the assets shall not exceed Rs 5 crore
vi. No direct or indirect withdrawal from accumulated profits or reserves is permitted for a period of 3 years
from the date of conversion
vii. Where the exemption is withdrawn, successor LLP or the shareholder of the predecessor company as the
case maybe shall be subjected to Capital Gain Tax independently in the year of withdrawal
• Transfer by individual by way of redemption of Sovereign Gold Bond issued by RBI is
exempt
 Transactions not to be treated as transfer – Sec 47
• Transfer of capital asset by one NR to another NR made outside India in nature of Rupee
dominated bond of an Indian Company issued outside India or Government securities
carrying periodic payment of interest through an intermediary dealing in settlement of
securities shall be exempt
• Conversion of bonds, debentures, deposit certificates or debenture stocks of a company into
shares or debentures of that company is exempt
• Conversion on Preference Shares of a company into equity shares of a company is exempt
• Any distribution of assets by companies to its shareholders on liquidation is exempt (Sec 46)
• Any income arising from transfer of a capital asset being a unit of the Unit Scheme 1964 of
UTI is exempt (Sec 10(33))
Expenses in connection with transfer – discussed class
 Important Concept
• Definition of Fair Market Value (FMV) Sec 2(22B) – It means the
i. The price that the capital asset would ordinarily fetch on sale in the open market on that relevant date
ii. Where the price is not ascertainable, such price as may be determined in accordance with the Rules
made under this Act
 Chargeability - Sec 45
Sub Sec Transaction Year of Chargeability Consideration
(1) Transfer of capital asset PY in which transfer takes place Consideration for the transfer
(1A) Damage to or destruction of any PY in which money or other asset is The value of money or the FMV
Capital Asset received from the insurance of any other asset received on the
company date of such receipt
(1B) Receipt of sum under a Unit PY in which sum is received Sum received under ULIP
Linked Insurance Policy (ULIP)
(2) Conversion/treatment of a PY in which stock in trade is sold or FMV as on the date of
capital asset into stock in trade transferred conversion/treatment
(2A) Transfer of securities made by PY in which the transfer takes place Consideration for transfer is
the depository who is deemed to on FIFO method chargeable in the hands of the
be the registered owner under beneficial owner and not the
the Depositories Act 1996 depository
(3) Transfer of a capital asset by a PY in which the transfer takes place The value of the asset recorded in
partner to the firm/member to a the books of the firm/AOP/BOI
AOP/BOI by way of capital
contribution or other wise
 Chargeability - Sec 45
Sub Sec Transaction Year of Chargeability Consideration
(4) & Receipt of capital asset/money Previous year in which transfer takes Capital gain shall be determined
(9B) by a partner/member from firm place in the manner prescribed.
etc upon reconstitution of a firm

(5) Transfer of capital asset by way PY in which the compensation or The initial compensation or
of compulsory acquisition under part thereof is received enhanced compensation as the
any law in the nature of case maybe
i. Initial Compensation
ii. Enhanced Compensation PY in which compensation is
received or final order by any
court/tribunal/other authority is
made whichever is later
(5A) Transfer of capital Asset being PY in which the certificate of Stamp duty value of his share on
Land or Building or both by an completion for whole or part of the the date of issue of the certificate
individual/HUF by way of a project is issued by competent and consideration received in cash
specified agreement for authority if any
development of a project
(6) Repurchase of mutual fund units PY in which the repurchase takes Repurchase price of the units
referred to in sec 80 CCB place or scheme terminates
 Computation of Capital Gains – Sec 48
Sr Short Term Capital Gain (STCG) Amount (Rs)
No
1 Full value of consideration

2 Less: Expenses incurred in connection with the transfer

3 Net Consideration

4 Less: i. Cost of acquisition

ii. Cost of improvement

5 Gross capital gain

6 Less: Exemption u/s 54 if applicable

7 Net Short Term Capital Gains (Taxable)

 Computation of Capital Gains – Sec 48
Sr Long Term Capital Gain (LTCG) Amount (Rs)
No
1 Full value of consideration

2 Less: Expenses incurred in connection with the transfer

3 Net Consideration

4 Less: i. Indexed Cost of acquisition

ii. Indexed Cost of improvement

5 Gross capital gain

6 Less: Exemption u/s 54 if applicable

7 Net Long Term Capital Gains (Taxable)

 Important Concept
• Cost of Acquisition is the price paid or incurred by the assessee for acquiring the capital asset. This included the
purchase price, legal charges etc (Table to be prepared by students)
• Cost of Improvement – Any capital expenditure incurred on improvement of capital asset and not allowed as
deduction under any other head can be claimed as cost of improvement. In case of assets acquired prior to 1
April 2001, cost of improvement incurred post 1 April 2001 only can be considered.
• Indexation – In case of long term capital assets, deduction can be claimed for the cost of acquisition and cost of
improvement after indexing the same.
o Indexed Cost of acquisition means an amount which bears to the cost of acquisition the same proportion as Cost of Inflation
Index for the year in which asset is transferred bears to the Cost of Inflation Index for the first year in which the asset was held
by the assessee or for the year beginning on the 1 st day of April 2001 whichever is later
(Cost of Acquisition or FMV as on 1/4/2001 as the case maybe/Indexed factor for 2001-02 or for the year in
which the asset was held) * Index factor for the year of transfer
o Indexed Cost of improvement means an amount which bears to the cost of improvement the same proportion as
Cost of Inflation Index for the year in which asset is transferred bears to the Cost of Inflation Index for the year in
which the improvement to the asset took place
(Cost of Improvement /Indexed factor for the year in which improvement was made) * Index factor for the year
of transfer)
o Cost of Inflation Index (CII) in relation to a PY means such Index as the Central Government may having regards to 75% of average
rise in the Consumer Price Index (CPI) for the immediately preceding PY to such PY by notification in the Offical Gazette specify
in this behalf. CII for FY 2001-02 is 100, FY 2020-21 is 301 and FY 2021-22 is 317
 Important Concept
• Cost of Acquisition in various situations have been discussed in class. Kindly
refer to reference book for the same.
 Tax on short term capital gains (STCG) – Sec 111A

• Concessional Rate of Taxation – A concessional rate of 15% on short term capital gains of
transfer of an equity share in a company or a unit of an equity oriented fund or a unit of
business a business trust
• Conditions
1. Transaction to take place after 1/10/2004
2. Transaction shall be chargeable to STT (in case of transactions undertaken in foreign currency on a
recognized stock exchange located in an International Financial Service Centre would be taxable at 15%
even if STT is not applicable)
3. Adjustment of unexhausted basic exemption limit – The gains shall 1st be reduced by the unexhausted
basic limit and then the rate of 15% shall be applied (applicable to individual and HUF)
4. No deduction u/c VIA
In case of all other short term capital gains, the gain shall be included in the total income and
charged to tax as per the applicable slab rates.
 Tax on long term capital gains (LTCG) – Sec 112
• Rate of Taxation
Resident Individual/HUF – 20% (Basic exemption limit if not exhausted then first reduce the
gain and then apply the rate)
Domestic Company – 20%
Non-corporate non- resident or foreign company
i. LTCG arising on transfer of capital assets being unlisted shares or shares of a company in
which public are substantially interested - 10% without giving effect to indexation
ii. Other cases – 20%
All other Residents – 20%
Where tax payable in respect of any income arising from the transfer of a Listed Security
(other than a unit) or a zero coupon bond, exceeds 10% of the amount of capital gains before
indexation, then such excess shall be ignored while computing the tax payable by the assessee.
No deduction u/c VIA
 Tax on long term capital gains – Sec 112A
• Applicable – total income includes income chargeable under Capital Gains and such gains
have arisen from transfer of long term capital asset in nature of equity shares or unit of equity
oriented fund or a unit of business trust
• Payment of STT – Applicability is subjected to payment of STT. On equity shares, STT is
paid on its acquisition and transfer and on equity oriented fund/business fund, STT to be paid
on its transfer.
• Computation on capital gain tax
Does not exceed Rs 1 lacs – Nil
Exceeds Rs 1 lac – 10% on capital gains exceeding Rs 1 Lac
 Sec 46
• Capital gains on distribution of assets by companies in liquidation
o Assets distributed to shareholders not to be treated as transfer and hence no capital gain tax in hands on the
company
o Chargeable in hands on the shareholders as it is received for the extinguishment of rights in shares. If
amount is received in cash the amount received minus deemed dividend or if received in kind then Market
price minus deemed dividend shall be the consideration
o Asset received above if sold by shareholder subsequently, capital gains will be charged to tax. COA will be
the FMV on the date of distribution and the period of holding will also be reckoned from the date of
distribution
 Sec 46A
• Capital gains on Buyback of shares, securities
o The difference in the COA and the value of consideration received shall be deemed to be the capital gains
in the hands of the shareholders
o Applicable only in case of listed companies
o If held for more than 12 months indexation benefit can be claimed
o In case of unlisted shares, company is liable to a tax of 20% (12% surcharge and 4% SHECESS) as per sec
115QA. Income received by the shareholder is exempt u/s 10(34A).
 Exemptions in computation of Capital Gains
Sec Eligible Conditions Quantum Consequences
Assessee
54 Individual 1. Residential house (buildings and land appurtenant) is transferred CG or COA of the If new asset is sold
and HUF 2. LTCA new houses within 3 years from
3. Income chargeable under Income from House Property whichever is lower. the date of acquisition
4. CG in excess of Rs 2crore – 1 residential House in India should be or construction, then
purchased within 1 year before or 2 years after the date of transfer or the COA will be
construct residential house within 3 years after the date of transfer reduced by the CG
5. CG is less than Rs 2 crore - 2 residential House in India should be exempted earlier
purchased within 1 year before or 2 years after the date of transfer or
construct 2 residential houses within 3 years after the date of
transfer
6. Claim can be made only once
7. If investment not made before due date of return, amount has to be
deposited under CGAS.

54B Individual 1. Transfer of urban agricultural land COA of new If new asset is sold
and HUF 2. Used for agriculture for 2 yrs immediately preceding the date of agricultural land or within 3 years from
transfer. CG whichever is the date of acquisition,
3. New urban agricultural land to be purchased within 2 yrs from the lower then the COA will be
date of transfer. reduced by the CG
4. If investment not made before due date of return, amount has to be exempted earlier. NA
deposited under CGAS. to rural land.
 Exemptions in computation of Capital Gains
Sec Eligible Conditions Quantum Consequences
Assessee
54D Any 1. Compulsory acquisition of land, building, any right in land or CG or COA of the If new asset is sold
Assessee building forming part of an industrial undertaking new assets within 3 years from
2. Asset should have been used for business for 2 yrs immediately whichever is lower. the date of acquisition
preceding the date of transfer or construction, then
3. New land/building is to be purchased or constructed within 3 years the COA will be
from the date of transfer for shifting the existing business or setting reduced by the CG
up new business. exempted earlier

54EC Any 1. Transfer of LTCA being land/building or both CG or amount In case of

Assessee 2. CG arising from transfer to be invested in LTCA as specified within invested whichever conversion/transfer of
6 months from the date of transfer is lower bond or availing of
3. Specified Assets – specified bonds redeemable after 5 years issued loan or advance on
on or after 1/4/2018 by NHAI or RECL or any other scheme such bonds within 5
specified by Central Government. years, CG exempted
4. In case of conversion of CA into SIT, period of 6 months to be earlier will be taxed in
reckoned from the sale of SIT year of violation.
5. Maximum investment – Rs 50 Lacs
 Exemptions in computation of Capital Gains
Sec Eligible Conditions Quantum Consequences
Assessee
54EE Any 1. Transfer of LTCA CG or amount In case of
Assessee 2. CG arising from transfer to be invested in LTCA as specified within invested whichever conversion/transfer of
6 months from the date of transfer is lower bond or availing of
3. Specified Assets – unit/s issued before 1/4/2019 as specified by loan or advance on
Central Government. such bonds within 3
4. Maximum investment – Rs 50 Lacs years, CG exempted
earlier will be taxed in
year of violation.

54F Individual 1. Transfer of a LTCA other than residential house COA of new house If new asset is sold or
and HUF 2. Transfer of land also eligible is more than Net additional house is
3. Purchase 1 residential house in India within 1 year before or 2 years Sales consideration purchased or
after the date of transfer or construct within 3 years from the date of of asset sold, entire constructed within 3
transfer CG is exempted years, CG exempted
4. If investment not made before filing of return, amount to be and if reverse then earlier to be taxed as
deposited under CAGS proportionate CG is capital gains
5. Assessee should not own more than 1 residential house on the date exempted i.e
of transfer. LTCG*(Amount
6. Other than the new asset, no residential house should be purchased invested in new
within 2 years or constructed within 3 years from the date of Asset/Net Sales
transfer. consideration)
 Exemptions in computation of Capital Gains
Sec Eligible Conditions Quantum Consequences
Assessee
54G Any 1. Shifting of industrial undertaking from urban area to any other area COA + expenses In case the new asset
Assessee other than urban area incurred for is transferred within 3
2. Transfer should be of machinery, plant, building or land or any right specified purpose years, then CG
in building/land used for business of undertaking or CG whichever is exempted earlier will
3. CG to be utilized for purchase of new plant, machinery, acquisition less. be reduced from COA
of land and building or construction of building for the business, of the new asset.
shifting expenses or such other notified expenditure within 1 year
before or 3 years after the date of transfer
4. If investment not made before filing of return, amount to be
deposited under CAGS

54GA Any 1. Transfer of CA in relation to shifting of business from urban area to COA + expenses If new asset is
Assessee SEZ incurred for transferred within 3
2. Transfer should be of machinery, plant, land, building, right in specified purpose years, CG exempted
building/land used for business or CG whichever is earlier to be taxed as
3. Purchase plant, machinery, building/land or construct building in less. capital gains
SEZ, expenses for shifting to SEZ or such other expense as is
notified within 1 year before or 3 years after the date of transfer.
4. If investment not made before filing of return, amount to be
deposited under CAGS
 Exemptions in computation of Capital Gains
Sec Eligible Conditions Quantum Consequences
Assessee
54GB Individual 1. LTCA being residential house COA of new asset If amount deposited in
and HUF 2. Net consideration has been utilized to subscribe to equity shares of more than Net Sale specified bank not
an eligible company, which in turn is utilized by the company to consideration of utilized within 1 year,
purchase new plant and machinery within 1 year from the date of residential house, the capital gain
subscription of shares entire CG is exempt exempted earlier will
3. Unutilized amount to be deposited in an account in a specified and if reverse, be taxed
bank/institution before filing of return proportionate CG is If new asset is
4. Amount to be utilized as per the scheme notified by Central exempt transferred or shares
Government LTCG*(Amount are transferred within
5. Eligible Company – incorporated in the FY in which CG arises or in invested in new 5 years from the date
the following year on or before filing of return by the Asset/Net Sales of acquisition, CG
Individual/HUF, is engaged in eligible business, where the consideration) earlier exempted will
individual/HUF holds more than 25% share capital or 25% of voting be taxed. In case if the
rights after the subscription to the shares and is an eligible start up new asset is
company computer/software,
6. Eligible start up – incorporated during 1/4/2016 to 31/3/2021, total then the time limit is
turnover less than Rs 25 crore in the PY for which deduction of 3 years.
u/s80IAC is claimed and holds certificate of eligible business
7. Eligible business – innovation, development or improvement of
products/processes/services, a scalable business model with high
potential of employment generation and wealth creation
8. Exemption not applicable for houses transferred after 31/3/2021