Exemption from capital gains for reinvestment in specified preference shares, subject to time and transfer conditions. Exemption from capital gains is permitted for reinvestment of long-term capital gains in preference shares specified under Section 54EA, where those shares are issued by the named company within one year of the notification and subject to the prescribed monetary limit. The exemption requires the investment to be made out of income chargeable as capital gains, and if the assessee transfers the allotted shares within three years of allotment the initial investment is recaptured and becomes chargeable to tax as capital gains in accordance with the statutory recapture provision.
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.
Exemption from capital gains for reinvestment in specified preference shares, subject to time and transfer conditions.
Exemption from capital gains is permitted for reinvestment of long-term capital gains in preference shares specified under Section 54EA, where those shares are issued by the named company within one year of the notification and subject to the prescribed monetary limit. The exemption requires the investment to be made out of income chargeable as capital gains, and if the assessee transfers the allotted shares within three years of allotment the initial investment is recaptured and becomes chargeable to tax as capital gains in accordance with the statutory recapture provision.
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