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Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2012 exemption u/s 54EC can be taken only if the amt is invested within 06 months of transfer made.In one of the case the assessee had dep the amt in Investment A/c with bank with an intention tht he will use it for pur of HP , but later on he wanted to buy the bonds so for tht he applied for cancellation of investment a/c so tht the proceedds can be invt in bonds. Now, I wanted to know if the period of six months has already over and due to procedural delay in cancellation of Invt a/c the time frame for invt in bonds will be after six months.......will h eb able to get the exemption then.......???????? pls advise.......with cse law if any

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 July 2012 The deduction is available only if the amount is invested in in bonds within 6 months.

The fact that the assessee had made an investment in a bank with the INTENTION to purchase the bonds is not relevant.

The fact is that the assessee has failed to invest the amount within the specified time.

Accordingly, he is NOT eligible for investment.

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