Capital gains investment u/s 54EC

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sumitra godi (Querist)
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21 March 2017 I sold a house property on 29th June 2016.Now capital gains will be arised for this financial year.So if I invest in Rec/Nhai bonds now, will I get capital gain exemption.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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21 March 2017 No, exemption under 54EC is not available because in order to avail exemption under section 54EC investment should be within 6 months from the date of transfer.

If you invest in such bonds before 28th December 2016 then exemption can be claimed but since you have mentioned that nothing is invested till now so accordingly no exemption is available.

sumitra godi

sumitra godi (Querist)
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21 March 2017 okk.So Is there any other possibility to get exemption

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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21 March 2017 Yes, As per section 54 if you have sold residential house property then you can invest in new house till 28th June 2019.If you invest amount which is more than capital gains then 100% exemption is available. but note that there is lockin period of three years i.e. such new house cannot be sold till three years.

If you are unable to invest in new house till your date of filing of ITR, You can deposit amount intended to be invested separately in bank account in Capital gains account scheme and you will get exemption of amount deposited in such scheme but the same should be utilized before 28th June 2019

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