Capital Gain Exemption Under Section 54G: Shifting of Industrial Undertaking from Urban to Rural Area

Capital Gain Exemption Under Section 54G: Shifting of Industrial Undertaking from Urban to Rural Area

Section 54G allows taxpayers to claim exemption on capital gain (Long-term capital gain and Short-term capital gains) from the sale of an asset of an industrial undertaking that is moving from an urban area to a rural area. These assets include plant, machinery, land and buildings.

The urban area here means the area within the limit of a municipal corporation or municipality, which is declared as an urban area by the Central Government for the purpose of Section 54G. Let us understand more about the exemption under Section 54G.