section 54 EC

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babita Matta (Querist)

05 March 2011 The assessee has sold flat of Rs. 1.1 crore on 02/08/2009 and capital gain works out to Rs. 1 crore. Pls explain can both exemption given below can be claimed in FY 2009-10.

NHAI BONDS RS. 5000000 invested on 27/02/2010

REC Bonds Rs. 2500000 invested on 31/03/2010 and Rs. 2500000 invested on 30/04/2010

Is there any case pls give reference.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

05 March 2011 Investment in specified bonds should be made with in a period of six months after the date of transfer of the asset to avail the benefit of section 54EC of the Income tax Act,1961. Here, investment is made beyond the permitted time limit and hence claim will be prima facie disallowed irrespective of the quantum and modus operandi of the investment adopted by the assessee.

babita Matta

babita Matta (Querist)

05 March 2011 If the NHAI investment is made on 31/12/2009 and REC on 05/01/2010 then wht would happen

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

06 March 2011 You can claim 54EC exemption max. Upto50.00lacs by investing in specified bonds in a financial year.

The Investment should be made within 6 months from the sale of original asset.

"If the NHAI investment is made on 31/12/2009 and REC on 05/01/2010 then wht would happen"

Assessee can claim exemption upto50.00lacs in respect to the bonds of his choice.
On Balance amount he has to pay capital gain tax.

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