Tax Saving

Exemption from all income

Basic Exemption

• Individuals(Other than senior and super senior citizen) = Up to Rs. 2,50,000

• Senior Citizen (who is 60 years or more at any time during the previous year) = Up to Rs. 3,00,000

• Super Senior Citizen (who is 80 years or more at any time during the previous year) = Up to Rs. 5,00,000

Exemption in Capital Gain Income

Section 54

• Available to Individual and HUF

• Type of Capital Gain: Long-term

• Asset transferred Residential:  House property

• Assets to be acquired for exemption:  One residential house property

• Time limit Purchase: within 1 year before or 2 years after date of transfer OR Construction: within 3 years after date of transfer

• Amount: Investment in new assets or capital gain, whichever is lower

• Withdrawal of exemption: If new asset is transferred within 3 years of its acquisition

• Deposit in CGDS available: Yes

Section 54B

• Available to Individual and HUF

• Type of Capital Gain: Short-term or Long-term

• Asset transferred: Agriculture land used by taxpayer or by his parents or HUF for agriculture purposes in last 2 years before its transfer

• Assets to be acquired for exemption: Agricultural land (may be in urban area or rural area)

• Time limit: Within 2 years after date of transfer

• Amount: Investment in agricultural land or capital gain, whichever is lower

• Withdrawal of exemption: If new asset is transferred within 3 years of its acquisition

• Deposit in CGDS available: Yes

Section 54D

• Available to Any person

• Type of Capital Gain: Short-term or Long-term

• Asset transferred: Compulsory acquisition of land or building forming part of industrial undertaking (which was used for industrial purposes for at least 2 years before its acquisition).

• Assets to be acquired for exemption: Land or building for shifting or reestablishing said industrial undertaking

• Time limit: Within 3 years from date of receipt of compensation

• Amount: Investment in new assets or capital gain, whichever is lower

• Withdrawal of exemption: If new asset is transferred within 3 years of its acquisition

• Deposit in CGDS available: Yes

Section 54EC

• Available to Any person: 

• Type of Capital Gain: Long-term

• Asset transferred: Any long-term capital asset being Land or Building or Both

• Assets to be acquired for exemption: Bond of NHAI or REC, etc

• Time limit: Within 6 months from date of transfer

• Amount: Investment in new assets or capital gains, whichever is lower, however, subject to Rs. 50 lakhs.

• Withdrawal of exemption: If new asset is transferred or it is converted into money or a loan is taken on its security within 5 years of its acquisition

• Deposit in CGDS available: No

Section 54EE

• Available to Any person

• Type of Capital Gain: Long-term

• Asset transferred: Any long-term capital asset

• Assets to be acquired for exemption: Units of such fund as may be notified by Central Government to finance start-ups

• Time limit: Within 6 months after the date of transfer of original asset

• Amount: Investment in new assets or capital gains, whichever is lower, however, subject to Rs. 50 lakhs.

• Withdrawal of exemption: If new asset is transferred within a period of 3 years from the date of its acquisition. Note: Where assessee takes loans or advance on security of such specified asset, he shall be deemed to have transferred such asset on the date on which such loan or advance is taken.

• Deposit in CGDS available: No

Section 54F

• Available to Individual and HUF

• Type of Capital Gain: Long-term

• Asset transferred: Any long term asset (other than a residential house property) provided on date of transfer taxpayer does not own more than one residential house property (except the new house)

• Assets to be acquired for exemption: One residential house property

• Time limit: Purchase: within 1 year before or within 2 years after date of transfer Construction: within 3 years after date of transfer

• Amount: Investment in new assets X capital gain/net consideration

• Withdrawal of exemption: 

a) If new asset is transferred within 3 years of acquisition,

b) if another residential house is purchased within 2 years of transfer of original asset;

c) if another house is constructed within

3 years of transfer of original asset

• Deposit in CGDS available: Yes

Section 54G

• Available to Any person

• Type of Capital Gain: Short-term or Long-term

• Asset transferred: Land, building, plant or machinery, in order to shift industrial undertaking from urban area to rural area.

• Assets to be acquired for exemption: Land, building, plant or machinery, in order to shift industrial undertaking to rural area.

• Time limit: within 1 year before or 3 years after date of transfer

• Amount: Investment in new assets or capital gain, whichever is lower

• Withdrawal of exemption: If new asset is transferred within 3 years of acquisition

• Deposit in CGDS available: Yes

Section 54GA

• Available to Any person

• Type of Capital Gain: Short-term or Long-term

• Asset transferred: Land, building, plant or machinery, in order to shift industrial undertaking from urban area to SEZ.

• Assets to be acquired for exemption: Land, building, plant or machinery, in order to shift industrial undertaking to SEZ.

• Time limit: Within 1 year before or within 3 years after date of transfer

• Amount: Investment in new assets or capital gain, whichever is lower

• Withdrawal of exemption: If new asset is transferred within 3 years of acquisition

• Deposit in CGDS available: Yes

Section 54GB

• Available to Individual and HUF

• Type of Capital Gain: Long-term

• Asset transferred: Residential property (house or a plot of land) Note: Provisions of this section shall not apply to any transfer of residential property made after March 31, 2017. However, in case of an investment in eligible start-up, the residential property can be transferred up to March 31, 2019.

• Assets to be acquired for exemption: Subscription in equity shares of an eligible company. Note: 1. W.e.f. April 1, 2017, eligible start-up is also included in definition of eligible company. 2. The eligible company should utilize the amount of subscription for purchase of new assets (i.e., plant and machinery except vehicle, office appliances, computer or computer software etc.). However, In the case of eligible startup, the new asset shall include computers or computer software.

• Time limit: Investment by the assessee - Before due date for furnishing of return under Sec. 139(1). Investment by the company - within 1 year from date of subscription.

• Amount: Investment in new assets X capital gain/net consideration

• Withdrawal of exemption: If equity shares in company or new asset acquired by company is sold or transferred within a period of 5 years from date of acquisition.

• Deposit in CGDS available: Yes