Amt invested in Bonds in 6 months but in next year

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  1. Prabodh Patel

    Prabodh Patel New Member

    I sold propery (land) in March 2015 (recently). I am going to invest the gains in the long term capital gain tax exemption bonds - 54 EC (NHAI or REC). The income will be in Assessment Year 2015-16. However, the bonds will be purchased in next Tax Assessment year. I know six months are allowed to reinvest the LTCG.
    As far as tax is concern, how would I show it in the Tax Assessment Year 2015-16?
    If I reinvest in bonds in April 2015; and file my 2015-16 tax return in June 2015, can I take the exemption in Tax Ass. Year 2015-16?

    Thank you.
    Prabodh Patel
    [email protected]
  2. Parul_Gupta

    Parul_Gupta Active Member

    If you invest before filing of your income tax return, then you can take exemption without any formalities.

    If the amount is reinvested in bonds after filing of the income tax returns, then you would be required to deposit the amount in the Capital Gains Account.

    PS: In your case, as you are depositing the amount in April 2015 ie before filing the income tax return, therefore you can claim exemption under section 54EC without any formality of depositing in Capital Gains account
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