Exemption u/s 54 ec after return filing

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abhilasha jain (Querist)
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07 February 2012

MR. A WHO SOLD HIS LONG TERM CAPITAL ASSET IN THE MONTH OF MARCH 2011, THE SAME WANTS TO TAKE THE BENEFIT OF U/S. 54EC OF THE IT ACT.

MY QUERY IS ACCORDING TO 54EC THE LONG TERM CAPITAL GAIN ON ASSET HAVE TO INVESTED IN INVESTMENTS (EG. NHAI, ETC.) WITHIN SIX MONTHS FROM THE DATE OF TRANSFER OF CAPITAL ASSETS. SO, IN MY QUERY THE ASSESSEE HAS SOLD THE ASSETS ON 31ST MARCH, 2011 AND SO LAST DATE FOR MAKING THE INVESTMENTS IS 30TH SEPTEMBER, 2011 BUT LAST DATE OF FILING THE INCOME TAX RETURN IS 31ST JULY, 2011.

HOW THE PRESENTATION HAS TO BE DONE IN THE COMPUTATION OF INCOME IN THE F.Y. 2010-2011 IF THE ASSESSEE DECIDES TO MAKE INVETMENTS AS ABOVE IN THE MONTH OF SEPTEMBER, DOES A HAVE TO SHOW AS LTCG IN THE COMPUTATION OF THIS YEAR????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 February 2012 IN MY VIEW, THE ASSESSEE CAN FILE THE RETURN AFTER INVESTING THE CAPITAL GAINS IN THE BONDS SPECIFIED U/S 54EC WITHIN 6 MONTHS FROM THE SALE OF LT CAPITAL ASSET. . WITHOUT MAKING INVESTMENT HE CAN NOT CLAIM EXEMPTION.
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THERE IS NO BAR AS SUCH THAT EXEMPTION WILL NOT BE ALLOWED IN CASE THE RETURN IS NOT FILED ON OR BEFORE THE DUE DATE.
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CA Parth Shah

CA Parth Shah (Expert)
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07 February 2012 Hi Abhilasha,
In such case, the amount intented to be invested in such securities has to be deposited with Special Deposit Account and same deduction can be taken while filing return as if the amount has been invested subject to the condition that you actually invest the same within six months time period.

abhilasha jain

abhilasha jain (Querist)
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08 February 2012 but as per my knowledge , there is no provision in 54EC for depositing the capital gain in capital gain deposit account..

abhilasha jain

abhilasha jain (Querist)
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08 February 2012 but as per my knowledge , there is no provision in 54EC for depositing the capital gain in capital gain deposit account..

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