- 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.
- 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.
- If a loan is taken on the security of the new specified asset within 3 years, the same will be treated as capital gains
- 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)