54ec exemption

This query is : Resolved

Sunil Garg (Querist)
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21 May 2011 as we know the maximum exempt limit in 54ec is Rs.50lakh. Mr.A gained cap gain in feb 2011 & he invest the money in bonds u/s 54EC Rs. 50lakhs. No Problem..
Again in April he gained the cap gain. he want to invest in bonds u/s 54EC.
the question is Is he eligible for the amount invested Of Rs 1Crore in 54EC??
in spite of the fact that A.Y. are different in the above cases.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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21 May 2011 The exemption is Rs. 50 lakh for one Assessment Year.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 May 2011 One crore is possible as per https://www.simpletaxindia.org/2009/03/sec-54-ec-bonds-1-crore-capital-gain.html

But I feel that if the assessee prefers to do so by availing the celing of Rs. 1 crore by investing Rs. 50/- lakhs each in two financial years,it would mean that the law gives an additional benefit for those who postpone the transaction to the last quarter of the financial year thereby creating an adventurous situation inviting the risk of rejection by the income tax department.

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