Sir, 1. I sold my industrial unit(land and building) at IDA Hyderabad ,Urban area, and purchased Industrial land which is 40 km from Hyderabad and it is not in urban area.shall i claim exemption under 54g. Ours is partnership firm.
Yes, you can claim exemption under 54G.
This section provides exemption on transfer of asset in the case of shifting of industrial undertaking from the urban area to non-urban area.
A capital asset being plant, machinery, land or building or any right in land or building used for the purpose of an industrial undertaking situated in an urban area is transferred.
Madam, thank you for your reply and Please refer the sub clause under section 54g . ".in this sub section urban area means any such area within the limits of municipal corporation or municipality as the central govt may, having regard to the population, concentration of industries need for proper planning of the area and other relevant factors by general or special order declare to be an urban area for the purpose of the sub section. now my question is there any notification issued by the CBDT for hyderabad, Telengana state or the then combined Andhra Pradesh state. Is there any notification issued by CBDT. If threr is no such notification shall i eligible to claim exemption under 54G.
As per section 54G one can claim exemption on capital gain earned by selling of an industrial undertaking in urban area and investing the money in new industrial undertaking within 3 years after date of such transfer and such money is invested in buying land or building or "new" plant and machinery.
In above section urban area means such area which doesn't come under the municipal corporation or municipality. Thus it doesn't matter whether the place is 40 km away or 10 km away you will have to check whether it comes under the limit of municipal corporation or municipality, if it doesn't come under such limit you can shift there and claim exemption.
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Thank you
Yes, you can claim the exemption u/s 54G if you are reinvesting within 3 years from the date of sale.
However, please note that you need to check whether the new place comes under the limit of municipal corporation or municipality or not? Because any place which comes under municipal area is a urban area.
Dear Sir
Please find below the link regarding notified Urban area list :
https://www.incometaxindia.gov.in/Pages/utilities/Notified-Urban-Areas.aspx
I hope it will be helpful.
Thanks & Regards,
Payal Chhajed
Hi,
Yes, you can claim the exemption u/s 54G.
Yes, you can claim the exemption u/s 54G if you are reinvesting within 3 years from the date of sale.
Hi,
- Not aware of any such notification but you as per Section 54G you are eligible.
Thanks
Hi
yes you can claim exemption under sec 54 g
