Sec 54 ec
This query is : Resolved
ROHINI KRISHNA
(Querist)
17 September 2014
Sir,
U/s 54 EC, it is said that, if the specified assets (Bonds redeemable after 3 years) are converted into cash within 3 years, then it will be taxable. Right? But, if NHAI or RECL compulsorily redeem the bonds in the 2nd year itself, then what will be the effect?
U/s 54 EC, it is said that, if the specified assets (Bonds redeemable after 3 years) are converted into cash within 3 years, then it will be taxable. Right? But, if NHAI or RECL compulsorily redeem the bonds in the 2nd year itself, then what will be the effect?
Nikhil Kaushik
(Expert)
17 September 2014
the effect will be same. therefore, you need to invest in bonds with maturity longer than three years (please note NHAI/REC dont redeem the bonds prematurely on their own)
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ROHINI KRISHNA
(Querist)
17 September 2014
Sir,
Consider a situation where an individual sold a long term capital asset for an amount Rs. 1oo lakhs on October 2012. He made an investment in the bonds of NHAI worth Rs. 50 lakhs during March 2013. During April 2013, he made another investment worth Rs.25 lakhs in RECL inorder to comply the provision of maximum investment allowed for exemption during one financial year is Rs 50 lakhs. My doubt is regarding the PY which the capital gain is taxable. Is it 2012-13 or 2013-14?
Consider a situation where an individual sold a long term capital asset for an amount Rs. 1oo lakhs on October 2012. He made an investment in the bonds of NHAI worth Rs. 50 lakhs during March 2013. During April 2013, he made another investment worth Rs.25 lakhs in RECL inorder to comply the provision of maximum investment allowed for exemption during one financial year is Rs 50 lakhs. My doubt is regarding the PY which the capital gain is taxable. Is it 2012-13 or 2013-14?
Nikhil Kaushik
(Expert)
17 September 2014
the remaining amount of Rs 25 lakhs will be taxed in the financial year 2012-13 itself. please note the taxation is based on the earning of gains.
Further, from AY 2015-16, this mode of investing in excess of Rs 50 lakhs wont be available on account of amendment made to section 54EC through Finance Act 2014
Further, from AY 2015-16, this mode of investing in excess of Rs 50 lakhs wont be available on account of amendment made to section 54EC through Finance Act 2014
ROHINI KRISHNA
(Querist)
17 September 2014
Sir,
How 25 lakhs get taxed in AY 2013-14? Exemption that can be claimed in AY 2013-14 is only 50 lakhs hey na? Can the amount invested in April 2014 be claimed during AY 2014-15?
How 25 lakhs get taxed in AY 2013-14? Exemption that can be claimed in AY 2013-14 is only 50 lakhs hey na? Can the amount invested in April 2014 be claimed during AY 2014-15?
Nikhil Kaushik
(Expert)
17 September 2014
no. if you dont claim exemption in AY 2013-14, then you will ending up paying tax anyways in that AY itself!
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