Which capital asset should be transferred to claim the exemption under section 54D?
The exemption under Section 54D​ is available for the capital gain arising by way of compulsory acquisition of land or building, forming part of an Industrial undertaking. Such land or building should be used by the assessee for the business of the industrial undertaking for a period of 2 years before the date of compulsory acquisition.
The land or building forming part of the industrial undertaking may be a short-term capital asset or a long-term capital asset. Both of them enjoy the exemption.​