What if I buy Bonds instead of Property to claim Exemption?

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  1. Please enlighten on the following issue.
    I sold my old house in June 2016 which I had purchased in 1998. I parked the total proceeds in Capital Gains Account Scheme assuming that I will buy a new property. For some reasons, I now don't want to buy new property.
    I want to close this Capital Gains account. Out of total proceeds (Rs 40 lakh), I intend to buy REC/NHAI bonds (Rs 25 lakh i.e. capital gains amount) and balance amount of Rs 15 lakh, I wish to be transferred to my savings account.
    Will I be eligible for Income tax exemption under Sec 54 EC as I will buy the bonds within 6 months from the date of sale of my old house.
  2. Karan Batra

    Karan Batra Well-Known Member

    Yes, you can claim exemption under Section 54EC in the above mentioned case
  3. Thanks for prompt reply.
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