What are the circumstances in which exemption under section 54G can be withdrawn?
The exemption claimed by assessee under s​ection 54F can be withdrawn in the following circumstances:
a) Transfer of new asset within 3 years: If the new asset or any rights in it are sold within 3 years of its purchase or construction, the cost of the new asset will be reduced by the amount of capital gain that was previously exempt. The classification of the capital gain as long-term or short-term on the sale of the new asset will be determined based on the length of time it was held.
b) Non-Utilisation of amount deposited in capital gain account scheme: If the funds deposited in a capital gains account scheme are not used to move an industrial undertaking within 3 years after the date of transfer, the unspent deposit will be considered as capital gain in the relevant previous year in which the 3-year time period expires. The type of capital gain will be the same as the original gain.