Business Portal of India : Taxation : Taxation of Individuals : Sources of Income : Income from Capital Gains : Exemptions from Capital Gains

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Income from Capital Gains:
Exemptions from Capital Gains

There are certain cases where the transfer of capital assets is taking place but the capital gain arising out of such transactions is exempt from income tax. Such exemptions are of two types:-

Exemption of capital gains under section 10 of the Income Tax Act. It contains exempted capital gain in the hands of various categories of persons.
Exemptions of capital gains under the following sections:-
- Profit on sale of property used for residence(Section 54)
- Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases(Section 54B)
- Capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases (Section 54D)
- Capital gain not to be charged on investment in certain bonds(Section 54EC)
- Capital gain on transfer of certain listed securities or unit, not to be charged in certain cases(Section 54ED)
- Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house(Section 54F)
- Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area (Section 54G)