Sec 54 EC

This query is : Resolved

Prakash (Querist)
Follow

06 January 2011 A sold property during December 2010 for a sum of Rs 1.15 crore resulting in a long term capital gain of Rs 1 crore. He has invested a sum of Rs 50 lakhs in eligible Bonds during December 2010 (Financial year 2010-11) and plans to invest the balance Rs 50 lakhs during April 2011(Financial year 2011-12). Will he be eligible to claim the entire Rs 1 crore as exemption for the Assessment year 2011-12 u/s 54EC as the restriction for investment of Rs 50 lakhs is per financial year and not assessment year.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

06 January 2011 One crore is possible as per https://www.simpletaxindia.org/2009/03/sec-54-ec-bonds-1-crore-capital-gain.html

But I feel that if the assessee prefers to do so by availing the celing of Rs. 1 crore by investing Rs. 50/- lakhs each in two financial years,it would mean that the law gives an additional benefit for those who postpone the transaction to the last quarter of the financial year thereby creating an adventurous situation inviting the risk of rejection by the income tax department.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Tushar Gupta

office docs

Rajat Khandelwal

Jagdeep Kaur

rajeev koolwal

Subscribe Now

Sec 54 EC

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA