Section 54GB
Capital gain on transfer of residential property not to be charged in certain cases (Investment in Start-ups)
Quick Answer
Section 54GB (Capital gain on transfer of residential property not to be charged in certain cases (Investment in Start-ups)) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.
What changed for Section 54GB
The starting point is Section 54GB of the Income Tax Act, 1961 — capital gain on transfer of residential property not to be charged in certain cases (investment in start-ups). Exempted LTCG from the sale of a residential house if the net consideration was invested in the equity shares of an eligible start-up.
When the Income-tax Act, 2025 takes effect on 1st April 2026, Section 54GB is deleted rather than renumbered. NA. Sunset clause activated after 31st March 2022. No new claims allowed.
For Section 54GB, the practical impact is rated Medium. Was an innovative but short-lived start-up funding incentive.
Sec 54GB
Provision Summary
Exempted LTCG from the sale of a residential house if the net consideration was invested in the equity shares of an eligible start-up.
Deleted
Provision Summary
NA. Sunset clause activated after 31st March 2022. No new claims allowed.
Key Changes & Highlights
- Expired. Did not gain enough traction to be renewed.
Related Sections
Frequently Asked Questions
What is Section 54GB of the Income Tax Act, 1961 about?
Section 54GB of the Income Tax Act, 1961 covers capital gain on transfer of residential property not to be charged in certain cases (investment in start-ups). Exempted LTCG from the sale of a residential house if the net consideration was invested in the equity shares of an eligible start-up.
What happens to Section 54GB in the Income-tax Act, 2025?
Section 54GB has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. NA. Sunset clause activated after 31st March 2022. No new claims allowed.
What is the impact of the change to Section 54GB under the new tax code?
The transition impact for Section 54GB is rated Medium. Was an innovative but short-lived start-up funding incentive.
What should I watch out for when Section 54GB moves to the 2025 code?
Expired. Did not gain enough traction to be renewed. These points are specific to Section 54GB (Capital gain on transfer of residential property not to be charged in certain cases (Investment in Start-ups)).
Disclaimer: This mapping of Section 54GB (Capital gain on transfer of residential property not to be charged in certain cases (Investment in Start-ups)) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 54GB is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
Need professional help on Section 54GB?
Compare trusted providers — both offer CA services ready for the Income-tax Act, 2025.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?