Capital gains 54ec

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CA ANSHUL DOKANIA (Querist)
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17 March 2013 Suppose A sold equity shares of a private limited company on 18/12/2012 sales consideration=10947469 indexed cost of acquisiton=1898358 so LTCG= 9049111. Now to avoid capital gain tax, A wants to invest Rs.50 lacs u/s 54EC(NHAIbonds) during march 2013 Rs.40.49 lacs u/s 54EC(NHAI Bonds) during April 2013. My question is =How it will be reflected in the income tax return of the assessee for ASST YEAR 2013-14.?Whether whole deduction u/s 54EC to be taken in Asst year 2013-14 or 40 lacs during 2014-15 as the financial year changes.? Because u/s 54EC maximum deduction is of Rs 50 Lacs during a financial year.

CA Mahavir Shah

CA Mahavir Shah (Expert)
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18 March 2013 You can claim whole deduction of whole amount in AY 2013-14, if you have invested said sum with in 6 months from the date of sales.

Also take the note that it is MAXIMUM INVESTMENT that can be made during a F.Y and not deduction.

In short maximum limit is for investment & not for deduction, so you can very well invest in the bonds subject to 6 months time limit.

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