Capital gains exemption on shifting to SEZ requires reinvestment of gains into SEZ assets within the prescribed time frame. Section 54GA grants a capital gains exemption where a person transfers plant and machinery, land or building in the course of shifting an industrial undertaking to an SEZ, provided the capital gain is utilised to acquire or construct new assets in the SEZ, transfer the original asset, or incur notified shifting expenses within the prescribed time; the exemption equals the lower of the capital gain and the cost of the new asset or deposit, and disposal of the new asset within the limited period requires reduction of its cost of acquisition by the exempted amount.