Tax on amt received from sale of NHAI & REC Bonds

Share
Share This Thread
  1. shaheenazk

    shaheenazk New Member

    Hello, pls pardon me if I sound foolish. Suppose I invest 50 lacs in nhai or rec bonds for 3 yrs after selling a PART of my residential property for 50 lacs, will I be still eligible for exemption from paying capital gains tax on the entire amount? Also, what happens after 3 yrs? Can I take back the 50 lacs I had invested in the above mentioned bonds after expiry of 3 yrs, and make a fixed deposit? Will I have to pay any capital gains tax on 50 lacs apart from paying income tax on interest earned on the bonds and on the fixed deposit?
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. If you reinvest Rs. 50 Lakhs, you can avail exemption of Rs. 50 Lakhs and No tax would be applicable.
    2. On maturity of these bonds, you will get the whole amount back with interest and you can deposit it in FD. You only have to pay tax on the interest earned on Rs. 50 Lakhs and not on the whole amount received.
     
    Uday_Shah likes this.
  3. shaheenazk

    shaheenazk New Member

    Thanks for the prompt reply. It's really appreciated. One last query. By reinvestment do you mean investing the sales proceed from the sale of the part of my residential property directly into nhai or rec bonds, right?
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    To claim exemption under Section 54EC - you only have to reinvest the Capital Gains in bonds of NHAI & REC
     
  5. shaheenazk

    shaheenazk New Member

    Thanks again. I am assuming 50 lacs sales proceed is the capital gain.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Tax on sale of property received as Gift from Father Other Taxes Jul 13, 2015
Gift Tax on Amt received from Cousin Other Taxes Sep 7, 2016
Tax on Property received as Gift from Mother Other Taxes Sep 7, 2016
Where will the TDS deducted on rent received, be visible? Other Taxes Aug 23, 2016
Import Duty on Mobile Phone received through Courier Other Taxes Mar 23, 2016