What are the circumstances in which exemption under section 54GB can be withdrawn?

Exemption under section 54GB is withdrawn if shares or assets are sold within specified periods or funds remain unutilised.

Withdrawal of the exemption occurs in three situations: sale or disposal of the eligible company's equity shares by the assessee within the holding period; sale or transfer by the eligible company of the new asset acquired with the invested capital within the prescribed period (with a shorter period for certain computer assets); and non utilisation by the eligible company of funds deposited in the capital gains account scheme to acquire new assets within one year, causing the earlier exemption or proportionate exemption to be treated as long term capital gain.