03 October 2018
Amount of Net sale consideration was 4,03,91,500/- Indexed cost of acqusition 1,03,24,067 /- Amount of investment in REC Bonds u/s 54EC 1,00,00,000 /- What is the amount of Net sale consideration to be taken for investment u/s 54F either 4,03,91,500(Net sale consideration) OR 3,03,91,500(Net sale consideration Less Investment in REC bonds)
As per Section 54F, "net consideration", in relation to the transfer of a capital asset, means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer.
So you have to consider Rs.4.03 crores for 54F benefit.
CAclubindia
