Capital gains rollover for compulsory acquisition allows deferral where proceeds are reinvested in replacement industrial land or building. Capital gains from compulsory acquisition of land or buildings used in an industrial undertaking are relieved if the assessee purchases or constructs replacement land or building within the reinvestment period; excess gain over replacement cost is taxable while gain reinvested reduces the cost basis of the new asset; unutilised proceeds must be deposited under a notified scheme with proof on filing, treated as part of the new asset cost, and any remaining deposited amount after the period is charged as income and may be withdrawn per the scheme.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains rollover for compulsory acquisition allows deferral where proceeds are reinvested in replacement industrial land or building.
Capital gains from compulsory acquisition of land or buildings used in an industrial undertaking are relieved if the assessee purchases or constructs replacement land or building within the reinvestment period; excess gain over replacement cost is taxable while gain reinvested reduces the cost basis of the new asset; unutilised proceeds must be deposited under a notified scheme with proof on filing, treated as part of the new asset cost, and any remaining deposited amount after the period is charged as income and may be withdrawn per the scheme.
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