Exemption under section 54ec

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Krupal Shah (Querist)
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06 September 2014 according to the budget 2014,
Controversy had ariven in cases where the transfer of capital asset was done after 30 SEPT WHEREBY THE ASSESSE WAS TAKING THE BENEFIT OF RELIEF OF 1 CRORE AS AGAINST THE PRESCRIBED LIMIT OF 50 LAKHS BY MAKING INVESTMENT IN TWO FINANCIAL YEARS.

CAN U PLZ ECXPLAIN THE ABOVE CONCEPT OF 30 SEPT...HOW THE RELIEF OF 1 CRORE AND THE NEW PROVISION INSERTED NOW ? PLZ HELP

THANKS
KRUPAL

DrSANGITA PHD MBA(usa)CACSCWA

DrSANGITA PHD MBA(usa)CACSCWA (Expert)
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06 September 2014 Sec 54EC say that Investments in " Financial Year " allowed at Maximum 50 Lkhs & also that such Investments should be made within 6 months from the date of making Long Term Capital Gains.Now if you take suppose 10 Oct 2013 as your date of Earning your LTCG then.... Your 1st Condition of within 6 months of date of Gains will end on 9th April 2014. ( This gives you over lap of 2 FY ( 2013-14 ) & (2014 - 15 ) Another condition under 54EC is that Maximum Investment allowed in a FY is 50 Lkhs. So you can Invest 50 Lkhs before 31st March 2014. & Other 50 Lkhs Btwn 01st April 2014 - 9th April 2014. in case of Bothe Investments you satisfy Both Conditions. Hope your doubt is clear, Incase you need any further clarification you can send me a PM & I will reply you

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Krupal Shah

Krupal Shah (Querist)
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07 September 2014 SO maam according to budget 2014 investment in PY and subsequent year cannot exceed RS 50 lakhs...right?

DrSANGITA PHD MBA(usa)CACSCWA

DrSANGITA PHD MBA(usa)CACSCWA (Expert)
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07 September 2014 Yes Mr Shah You are Right, & You can Refer 54EC it is very Clear on this part

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