Capital Gains Exemption maximizes your tax savings

What is Capital Gains Exemption?

Capital gains are the profits that come from the sale of capital assets, and they are taxable under the Income Tax Act. The central government has introduced various types of deductions or exemptions that can give the taxpayers some benefits from the tax relief on these capital gains.

List of Exemptions in Capital Gain

Here is the list of exemptions under capital gain, which you can avail by meeting the conditions:

Capital Gains Tax Exemption	Type of Asset	Exemption amount	Applicability
Deductions under Section 54 of the Income Tax Act	Profits from selling the residential property	The lesser amount between the cost of the new asset and LTCG, but the limit is up to Rs 10 Crores	The assesse can be an HUF or an individual
Deductions under section 54B of the IT Act	Profits from selling or transferring the land for agricultural purposes	The cost of the new assets or the long-term capital gains, whichever has the lesser amount	The assesses can be HUFs and individuals. It is applied to both LTCG and STCG
Deductions under Section 54D	Gains on the acquisition of land and buildings for industrial purposes	The lesser of the price of the new asset and LTCG	Any assesse can apply for this
Deductions under Section 54EC	Profits for the different types of investments and bonds	Amount of exemption = cost of new asset*Capital gain/Net consideration ( the maximum amount is up to the amount of capital gains)	Any assesse can apply for this benefit. It is applicable for LTCG
Deductions under Section 54EE	Gains from the investments in a form of specific funds	Amount of exemption = cost of new asset*Capital gain/Net consideration ( the maximum amount is up to the amount of capital gain)	Only applicable for LTCG, and any assesse can apply for this
Deductions under section 54G and 54GA	Profits from the residential house investment	The lesser of the two, the cost of the new asset or LTCG	Any type of assesse can apply for this benefit, and it is also applicable for both LTCG and STCG

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