Regarding claiming exemption under section 54ec

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Mr A. is looking to claim an exemption under Section 54EC of the Income Tax Act after selling a residential property. He plans to invest in capital gains bonds, as he is not willing to purchase another residential property. He can indeed invest in these bonds, with a maximum limit of Rs. 50 lakhs, provided he does so within six months of the sale. These bonds must be held for five years, and premature withdrawal is not permitted. Any capital gains exceeding ₹50 lakh will be taxed as long-term capital gains under Section 112.

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(Querist)
16 November 2025 Mr A. has purchased a residential property in F.Y. 2005-2006. He is selling this property in F.Y. 2025-2026. He want to claim exemption under Income Tax.
Can he purchase bonds specified in section 54EC(he is not willing to by any other residential house property) ?
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
16 November 2025 Yes, maximum limit is Rs. 50 lakhs.
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CA Kedar Sakhardande

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CA Kedar Sakhardande (Expert)
18 November 2025 Yes he can claim exemption under section 54EC by investing in capital gain bonds within time limit of 6 months
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Aashok Kumar Sharmapro badge online

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Aashok Kumar Sharmapro badge online (Expert)
19 November 2025 Bonds must be held for 5 years; premature withdrawal is not allowed.
Gains exceeding ₹50 lakh → taxed as LTCG under Section 112.
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