Capital gain tax

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  1. Arun T Desai

    Arun T Desai New Member

    Dear Sirs,
    I am likely to receive some amount on transferring old asset and therefore the a mount will be chargea bye as Long term capital asset. I am interested in getting exemption from payment of income tax by purchasing bonds of NHAI or REC as provided under Section 54 EC . Under the section I am required to invest the amount received by transfer of asset with in a period of six months. I could not find any specific instructions of Govt about retaining the received amount for six months. The Capital Gains Accounts Scheme, 1988 does not appear to extend to Section 54 EC. Will it be in order in terms of Income Tax procedure if I retain the amount in my Saving Bank account till I invest it in specified bonds with in six months? What will happen if I fail to acquire the bonds despite application? For your kind information I may say that the prescribed application form for opening an account under Capital Gains Accounts Scheme in the State Bank of India does not make a mention of Section 54EC. Kindly advise.
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    You can keep the amount in your Savings Bank Account till the time you dont purchase the bonds under Section 54EC
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    However, the time period for this is limited to 6 months.

    If the amount is not invested from the saving bank account into Bonds within 6 months - then the amount will get taxable
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