Amendment in Section 54EC - Capital Gains Bonds

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  1. D K Pathak

    D K Pathak New Member

    I sold a property in Feb 2013. I was told that I can only invest maximum 50 Lakhs in any Capital gain bond in one financial year. so, I deposited 50 Lakhs in NHAI capital gain bond before March 2013. Then again I invested another 50 lakhs in NHAI bond in July 2014 which comes in next financial year and is within 6 months from the sale date. Is it OK or not ? Please clarify
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Dear @D K Pathak

    Yes, you can claim exemption under Section 54EC for Rs. 50 Lakhs deposited in previous financial year as well as for Rs. 50 Lakhs deposited in the current financial year. Therefore, the total exemption in your case would be Rs. 1 Crore.

    I would also like to share with you the fact that in the recently announced budget 2014 by Arun Jaitley, the limit for maximum exemption under section 54EC was capped at maximum of Rs. 50 Lakhs irrespective of the financial year.

    However, this is for assets sold in FY 2014-15 and onwards and not for assets sold in FY 2013-14 and therefore won't be applicable in your case.

    Kindly refer: http://www.taxmann.com/budget2014-1...nvestment-is-made-in-two-financial-years.aspx
     
  3. D K Pathak

    D K Pathak New Member

    A bag full of thanks for your response. ---Regds------D K Pathak
     
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