Section 54EE : Transfer of any Long Term Assets and make investment in units notified by Central Government

Income Tax Section 54EE

Conditions:

  • The taxpayer should be any assesses.
  • Transfer should be long term capital assets.
  • Investment should be made within 6 months.
  • No capital gain account scheme available.

ADDITIONAL CONDITIONS

  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 a loan is taken on the security of the new specified asset within 3 years, the same will be treated as capital gains
  3. Investment in Specified Unit Should not exceed 50 lakh during the current year and succeeding financial year.

Computation of exemption amount

Cost of new asset *capital gain /net consideration (maximum up to capital gain)

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