Question:medium
Long-term capital gain is not exempted in which of the following cases?
Long-term capital gain is not exempted in which of the following cases?
Show Hint
Carefully evaluate exemptions available under the Income Tax Act when planning asset sales.
Updated On: Feb 11, 2026
- Transfer of a residential house and investment in one residential house
- Transfer of agricultural lands
- Compulsory acquisition of land and building of industrial undertakings
- Transfer of assets
Show Solution
The Correct Option is D
Solution and Explanation
The Income Tax Act, specifically Sections 54, 54B, and 54EC, outlines exemptions for long-term capital gains when reinvested in particular assets, such as a home, farmland, or designated bonds. Transfers of common assets like stocks or mutual funds are not eligible for these exemptions unless explicitly stated in the Act.
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