Section 54GA Exemption: Shifting Industrial Undertaking from Urban Area to Special Economic Zone
If you have capital gains from the sale of capital assets of an industrial undertaking, then you can claim an exemption on such gains. Section 54GA of the Income Tax Act allows taxpayers to claim an exemption from the capital gain, including both long-term capital gains and short-term capital gains arising from the sale of a capital asset of an industrial undertaking while shifting from an urban area to a special economic zone (SEZ).
A Special Economic Zone (SEZ) is a designated area in a country that operates under different rules and regulations from the rest of the country. The aim of setting up SEZ is to attract foreign investment, enhance exports, generate more jobs and encourage the development in the country.