Here’s a detailed list of all the sections and subsections related to Section 54 of the Income Tax Act, 1961, which deal with exemptions from Capital Gains Tax on the transfer of capital assets:

1. Section 54 – Exemption on Long-term Capital Gains from Sale of Residential Property

• Applicability: This section allows exemption on long-term capital gains arising from the sale of a residential house property, if the proceeds are reinvested in purchasing or constructing another residential house property.
• Conditions:
  • The property sold should be a long-term capital asset (held for more than 24 months).
  • The taxpayer should purchase a new residential property within 1 year before or 2 years after the transfer, or construct a new property within 3 years from the transfer date.
  • The new property must be held for at least 3 years.
• Exemption Limit: The amount of exemption is lower of:
  • Capital gains from the sale of the property, or
  • The amount invested in purchasing or constructing a new house.

2. Section 54B – Exemption on Capital Gains from Transfer of Agricultural Land

• Applicability: Exemption is available for capital gains arising from the sale of agricultural land used by the taxpayer (or their parent) for agricultural purposes for at least 2 years before the transfer.
• Conditions:
  • The capital gain must be reinvested in the purchase of another agricultural land within 2 years of the sale.
  • The new agricultural land should not be sold for at least 3 years.
• Exemption Limit: Lower of:
  • The capital gain, or
  • The cost of the new agricultural land.

3. Section 54EC – Exemption on Capital Gains from Sale of Long-term Capital Assets (other than Residential Property)

• Applicability: Exemption is available on long-term capital gains arising from the transfer of any capital asset if the amount is invested in specified bonds.
• Eligible Bonds: Bonds issued by:
  • National Highway Authority of India (NHAI)
  • Rural Electrification Corporation (REC)
• Conditions:
  • The investment should be made within 6 months from the date of transfer.
  • The bonds must be held for at least 5 years.
• Exemption Limit: The amount of exemption is lower of:
  • Capital gains from the transfer, or
  • The amount invested in the bonds (maximum investment allowed is ₹50 lakh in a financial year).

4. Section 54F – Exemption on Capital Gains from Transfer of Any Asset other than Residential House

• Applicability: Exemption is available for long-term capital gains arising from the sale of any asset other than a residential house (e.g., land, shares), if the proceeds are reinvested in purchasing or constructing a residential house.
• Conditions:
  • The taxpayer should not own more than one residential house at the time of the transfer (excluding the house purchased under this section).
  • The taxpayer should purchase a new residential house within 1 year before or 2 years after the transfer or construct a house within 3 years.
  • The new house must be held for at least 3 years.
• Exemption Limit: The amount of exemption depends on whether the full sale consideration is reinvested or not:
  • If the entire sale consideration is reinvested, full capital gains are exempt.
  • If only a part of the sale consideration is reinvested, proportionate exemption is given.

5. Section 54GB – Exemption on Capital Gains from Sale of Residential Property or Land for Investment in a Startup

• Applicability: Exemption on long-term capital gains from the sale of a residential property or land if the sale proceeds are used to invest in the equity shares of an eligible startup (small or medium enterprise).
• Conditions:
  • The investment must be made before the due date of filing the return of income.
  • The shares must be held for at least 5 years.
  • The startup must utilize the investment to purchase new assets like plant and machinery within 1 year.
• Exemption Limit: Capital gains invested in the equity shares of the eligible company.

6. Section 54D – Exemption on Capital Gains from Compulsory Acquisition of Land and Building

• Applicability: Exemption on capital gains arising from the compulsory acquisition of land and buildings used for industrial purposes for at least 2 years prior to acquisition.
• Conditions:
  • The capital gain must be reinvested in purchasing or constructing land or a building for industrial purposes within 3 years of the transfer.
  • The new asset must be held for at least 3 years.
• Exemption Limit: Lower of:
  • The capital gain, or
  • The cost of the new industrial land/building.

7. Section 54EE – Exemption on Long-term Capital Gains Invested in Notified Units

• Applicability: Exemption on long-term capital gains if the proceeds are invested in the units of specified notified funds set up for start-ups.
• Conditions:
  • The investment should be made within 6 months of the transfer.
  • The maximum investment that qualifies for the exemption is ₹50 lakh.
  • The units must be held for at least 3 years.
• Exemption Limit: Lower of:
  • The amount of capital gain, or
  • ₹50 lakh.

Summary of Sections Related to Capital Gains Exemption under Section 54:

This list covers all the important sections and subsections related to capital gains tax exemptions under Section 54 of the Income Tax Act, 1961. Each of these sections has different eligibility conditions and benefits depending on the type of asset sold and reinvestment made.