Section 54D : Capital Gain on Land and Building forming part of Industrial Undertaking

Exemption is Allowed provided the Assessee has transfer land and building forming part of industrial undertaking and used for the same in past 2 year prior to transfer and purchased land and building for shifting or re-establishing the industrial undertaking.

Section 54D

Conditions :

  • The taxpayer should be any assesses.
  • Assets should be purchased land and building for shifting or re-establishment the industrial undertaking
  • Investment should be made within 3 years from date of transfer.
  • Transfer should be long term In nature.
  • Exemption amount  long term capital gain or cost of new assets.


  1. If new asset is sold within 3 years, amount earlier exempted under this section will be reduced from its COA to calculate capital gains thereon.
  2. If the amount in CGAS is not utilized within the prescribed time limit, such unutilized amount will be taxable as capital gains.

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