Rollover relief for capital gains allows deduction when transfer proceeds are reinvested in prescribed new assets within set periods.

Rollover relief allows individuals and HUFs a deduction from capital gains when proceeds from an original investment asset are reinvested in specified new assets; the deduction equals A x (B+C+D)/E (with A as capital gain, B and C as investments before and during the transfer year, D as deposits under the Capital Gains Deposit Scheme, and E as net consideration) and is capped at the capital gain. Deposits must be utilised within prescribed short and three-year timeframes, and eligibility for particular asset conversions and conditions is set out in Table-3.

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