Capital gain Tax Relief in relocation of industrial undertakings from urban areas to SEZ area in Clause 88 of Income Tax Bill, 2025 vs. Section 54GA of Income Tax Act, 1961

Capital gains exemption for industrial relocations to SEZs conditions relief on reinvestment in new SEZ assets and deposit rules.

Clause 88 grants a capital gains exemption when assessees transfer assets while shifting an industrial undertaking from an urban area to an SEZ, conditional on reinvesting gains into new SEZ assets within the prescribed investment window; unutilized gains must be deposited in a specified account and any excess of gains over the cost of new assets is taxable. Eligibility centers on assets used in the undertaking and utilisation for notified SEZ investments, with deposits treated as part of the new asset's cost for calculating the exemption.