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If capital gain not invested in house property

This query is : Resolved 

A PERSON WHO HAS PURCHASED FLAT ON 28/04/2004, & SELLS IT ON 21/10/2015. EARNS RS.17,27,235/- OF CAPITAL GAINS. HOW TO SAVE TAX ON IT. HE HAS NOT INVESTED THE CAPITAL GAIN IN PURCHASE OF HOUSE PROPERTY. OR OPENED CAPITAL GAINS ACCOUNT?


You can invest Under Section 54 EC of Income Tax, 1961 an investor need not pay any tax on any long-term capital gains arising on sale of any asset, if the amounts of capital gains are invested in certain specified bonds. Rural Electrification Corporation Limited (REC) & National Highways Authority of India (NHAI) are permitted to issue capital gains bonds under Section 54 EC.

Interest is taxable although no TDS is deducted
Lock-in of 3 years and non- transferable
Minimum investment-1 Bond amounting to Rs. 10,000/- and maximum investment-500 Bonds amounting to Rs. 50 lakhs in a financial year
Rate of Interest 6.00% p.a. payable annually

you can invest in 54EC securities viz REC bonds or NHAI bonds within 6 months i.e. on or before 20/04/2016


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