WE ARE IN PROCESS OF SELLING OUR INDUSTRIAL LAND AND BUILDING OF THE PARTNERSHIP FIRM NAME AND WOULD LIKE TO SAVE CAPITAL GAIN TAX IN A SIZABLE WAY. PLEASE GUIDE US FOR THE SAME.

Hey,

I know how to save capital gains tax on sale of land but I will need to know some property-related details like when did you buy this industrial land and property, to whom you are selling it, etc. So, I request you to provide all the relevant details. Check out these capital gains exemption/deductions related to industrial land and property:

Gains from the sale of equipment, buildings, or land to move a venture from an urban to a rural area are exempt under section 54G of the Income Tax Act. However, you need to ensure that the gains are reinvested in purchasing similar assets for the same purpose.

Applicable for the transfer of equipment, buildings, or land from an urban area to a SEZ (Special Economic Zone) under the same conditions as Section 54G.

Exemption on gains from the sale of industrial buildings or land, used for industrial purposes for a minimum of two years, to the govt. if the income is reinvested in purchasing buildings or land for industrial use.

These answers will be helpful to you: