Investment in 54ec bond

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2017 Suppose I have sold a plot of land on 30.09.2016 with Rs.50 lakhs for which the long term capital gain comes to Rs 40 Lakhs. I want to invest these 40 Lakhs in NHAI bond. I have received advance payment in 5 instalment say on 05.01.2016, 15.03.2016, 05.05.2016, 08.08.2016, 30.09.2016. When should I make investment in 54EC bond, at the time of final sales deed i.e. 30.09.2016 or as and when i have received the advance money?

Expert : Anonymous

Expert : Anonymous (Expert)

22 March 2017 Amount to be invested within 6 months from the date of transfer of orginal asset.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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22 March 2017 Yes in order to avail exemption under 54EC investment should be within 6 months from date of transfer i.e. in your case if asset was sold on 30/06/2016, amount should be invested before 29/12/2016 in order to avail exemption