Amendment of section 54GB.
19. In section 54GB of the Income-tax Act, in sub-section (5), in the proviso, for the figures “2021”, the figures “2022” shall be substituted.
Notes on Clauses:
Clause 19 of the Bill seeks to amend section 54GB of the Income-tax Act relating to capital gain on transfer of residential property not to be charged in certain cases.
The provisions of the said section, inter alia, provide for roll over benefit in respect of capital gain arising from the transfer of a long-term capital asset, being a residential property owned by the eligible assessee. In order to get benefit of this provision, the assessee is required to utilise the net consideration for subscription in the equity shares of an eligible company before the due date of filing of the return of income. Currently the benefit of this section is only available for investment in the equity shares of eligible start-ups upto 31st March 2021.
It is proposed to amend the proviso to sub-section (5) of the said section so as to provide that in case of an eligible start-up, the capital gains arising from transfer of residential property made upto 31st March, 2022 shall be eligible for the benefit under the said section.
This amendment will take effect from 1st April, 2021.
