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Exemption of Capital Gains on Shifting of Industrial Undertaking from Urban Area to Special Economic Zone (SEZ) - (New) Section 88 / (Old) Section 54GA
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....st occur: • in the course of, or • as a consequence of, shifting the industrial undertaking to an SEZ. Investment in Specified Assets/Activities Investment in specified assets Within: • 1 year before the date of transfer, or • 3 years after the date of transfer, the assessee must undertake one or more of the following: • (i) purchased machinery or plant for the business of the industrial undertaking in such Special Economic Zone; • (ii) acquired building or land or constructed building for his business in such Special Economic Zone; • (iii) shifted the original asset and transferred the establishment of such undertaking to such Special Eco....
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.... • not later than the due date prescribed under Section 263(1). (d) Proof of such deposit must accompany the return of income. Taxability of Unutilised Deposited Amount after Expiry of Prescribed Period [ Section 88(4) ] Clause (a) • If the deposited amount is not utilised within the 3-year period specified in sub-section (1): • The unutilised amount becomes taxable as capital gains under Section 67 in the year in which the 3-year period expires. Clause (b) • After such taxation, the assessee may withdraw the balance amount from the deposit account according to the notified scheme. Deemed Cost of New Asset [ Section 88(2) ] The following shall be treated as the co....
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....ne year before or three years after the date on which the transfer took place,- • (a) purchased machinery or plant for the purposes of business of the industrial undertaking in the Special Economic Zone to which the said undertaking is shifted; • (b) acquired building or land or constructed building for the purposes of his business in the Special Economic Zone; • (c) shifted the original asset and transferred the establishment of such undertaking to the Special Economic Zone; and • (d) incurred expenses on such other purposes as may be specified in a scheme framed by the Central Government for the purposes of this section, Capital Gain Deposit Scheme Available Quantum of Deduction....