​​A taxpayer can claim exemption from certain capital gains by re-investing the amount of capital gain into specified asset. The following table highlights the assets in respect of which the benefit of re-investment is available:

Section

 Eligible Assessee  Gain eligible for claiming exemption Asset in which the capital gain is to be re-invested to claim exemption
Section 54 Individual/HUF Long-term capital gain arising on transfer of residential house property. (Held for 2 year or more) Gain to be re-invested in purchase or construction of one residential house property in India.

However, w.e.f., Assessment Year 2020-21, an assessee can make investment in two residential house property in India. The option of making investment in two residential house is available only if the amount of long-term capital gain doesn’t exceed Rs. 2 crore. Further, the benefit of making investment in two residential houses can be availed once in a lifetime.

From AY 2024-25, there is a upper limit of maximum deduction of Capital Gain is Rs.10 Crores.
Section 54B Individual/HUF Long-term or short-term capital gain arising on transfer of agricultural land which was used by individual or his parents or HUF for agriculture purposes for atleast 2 years immediately prior to transfer. Gain to be re-invested in purchase of agricultural land (may be in rural arear or urban area).
Section 54EC Any person Long term capital gain arising on transfer of land or building or both. Gain to be re-invested in purchase of bonds (NHAI & REC) specified under Section 54EC.
Section 54EE Any person Long-term capital gain arising on transfer of any capital asset. Gain to be re-invested in long-term specified assets to be notified by the Central Government to finance start-ups.
Section 54F Individual/HUF Long-term capital gain arising on transfer of any capital asset other than residential house property, provided on the date of transfer the taxpayer does not more than one residential house property from the assessment year 2001-02 (except new house property) Net sale consideration to be re-invested in purchase or construction of only one residential house property in India.

From AY 2024-25, there is a upper limit of maximum deduction is Rs.10 Crores. If the cost of new asset purchased is more than Rs.10 crore, the cost will be deemed to be Rs. 10 crore.
Section 54D Any person Long-term or Short-term capital gain arising on transfer of land or building forming part of an industrial undertaking which is compulsorily acquired by Government and was used for industrial purpose for a period of 2 years prior to its acquisition. Gain to be re-invested to acquire land or building for industrial purposes.
Section 54G Any person Long term or Short term capital gain arising on transfer of land, building, plant or machinery in order to shift an industrial undertaking from urban area to rural area. Gain to be re-invested to acquire land, building, plant or machinery in order to shift an industrial undertaking to a rural area.
Section 54GA Any person Long term or short term capital gain arising on transfer of land, building, plant or machinery in order to shift an industrial undertaking from urban area to any Special Economic Zone. Gain to be re-invested to acquire land, building, plant or machinery in order to shift an industrial undertaking to any Special Economic Zone.
Section 54GB Individual/HUF Long-term capital gain arising on transfer of residential property (a house or a plot of land). The transfer should take place during 1st April, 2012 and 31st March 2017. However, in case of investment in “eligible start-up”, the residential property can be transferred upto 31st March, 2021​. The net sale consideration should be utilised for subscription in equity shares of an “eligible company”.   W.e.f. April 1, 2017, eligible start-up is also included in definition of “eligible company”.

In order to claim the exemption on account of re-investment in various situations as discussed above, other conditions specified in the respective sections should also be satisfied and the re-investment should be made within the period specified in the respective sections.

Source: https://incometaxindia.gov.in/