Capital Gain - Indexation together with 54EC

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CA Bharanni Ashok (Querist)
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07 September 2025 Immovable property (Land & building) sold on 29th October 2024. Capital gain portion after indexation invested wholly in 54 EC bonds. But, when I fill up the capital gain schedule, it's not allowing me to avail both indexation benefit and investment in 54EC both. If I change the date of transfer to June, there is no Capital gain which attracts tax. Please guide.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 September 2025
Read: : The Finance (No. 2) Act, 2024 removed the indexation benefit and introduced a uniform tax rate of 12.5% on long-term capital gains. As per the amendment, no indexation benefit is allowed while computing capital gain from long-term capital assets transferred on or after 23-07-2024. However, the Government has introduced a grandfathering provision.
This provision allows resident individuals and resident HUFs to still apply indexation on land or building acquired before 23-07-2024 and pay tax at the old rate of 20% if the tax under the new law (i.e., tax calculated at 12.5% without indexation benefit) results in a higher amount.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 September 2025 Good Luck..

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