In order to promote the Start-up India Action Plan with the intention to raise Rs.10,000 crores, in a span of 4 years, in order to finance start-ups through a specified Fund, the department has introduced a new Section on the same lines of Section 54EC. The provisions of the new Section are as follows:-
-Long term capital gains on any assets shall be exempt if proceeds are invested in units of specified Fund
-Investment shall be made within 6 months from date of transfer
-Lock-in period of investment shall be 3 years; however, if the amount is withdrawn before the expiry of 3 years, exemption erstwhile provided shall be revoked.
-Further, even if loan or advance is taken against the security of this investment, it shall be deemed that the said investments are transferred
-Maximum limit of investment shall be Rs.50 lakhs
The provisions are exactly similar to Sec 54EC except that the instrument for investment is different.
