As per section 54GB of the Income Tax Act, Where Capital Gain arises from the transfer of long-term capital assets, being a residential property (a house or a plot of land), owned by the eligible assessee utilizes the net consideration for subscription in equity shares of the Company Engaged in the business of manufacture of article or thing and Such a Company should be qualified as Small or medium enterprises under MICRO, Small and Medium enterprises Act, 2006 and post such Investment assessee has more than 50% voting right in such enterprise.
- Available to an individual or HUF.
- Not apply if residential property is transferred on or after 31st March, 2017.
- Amount is reinvested before due date of furnishing return of income U/s 139(1)
- Amount should be utilized by the Company for the purchase of new plant and Machinery which includes office appliances and Vehicles within the period of 1 year from the date of subscription.
- The share cannot be transferred within a period of 5 years.