Deduction u\s 54ec

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dixon (Querist)
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03 March 2012 i have sold a property on 15-01-2012 and the long term capital gain worked up to 25000000.
out of the proceeds i have purchased a house property for 1 crore and invest amount of rs 50 lakh in bond specified in 55ec on 30-01-2012. so am i eligible for a further investment of 50 during april 2012

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 March 2012 Investing Rs.50lakhs more than once,as per the pattern in the query raised, would mean that the law gives an additional benefit for those who postpone the transaction to the last quarter of the financial year.So,according to me,that would be an unfair conclusion by giving a stretching to the words'during a financial year'appearing in the proviso to section 54EC. To conclude,the ceiling of Rs.50lakhs should be considered in the light of capital gains for the year. Any other view would be adventurist,inviting risk of rejection from the side of revenue authorities.
However,this is not an opinion and is only my understanding put up in this forum for further deliberations.

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