Section 54ec
This query is : Resolved
05 March 2014
Can anyone kindly help me with the reason why CGDS account is not applicable to Section 54EC while it is applicable to all other account under Capital gains?
05 March 2014
because 54EC is available only for 6 months from the date of sale whereas other sections normally are available till 3 years from date of sale. so there is no need to CGAS account for 54EC.
05 March 2014
but if time period is only 6 months then instead,option should be given to deposit the amount in CAGS since time period is less..
while for other section have enough time period to invest the amount..
so what i think that CGAS(CGDS) should be made available to 54EC since we dont have muc time to invest the money..
kindly rectify if I am going wrong..
while for other section have enough time period to invest the amount..
so what i think that CGAS(CGDS) should be made available to 54EC since we dont have muc time to invest the money..
kindly rectify if I am going wrong..
05 March 2014
Joy CGAS was brought in to ensure that the assessee keeps capital gains in a designated account where he opts for claiming exemption by way of purchasing a house in 2 years or construct one in 3 years.
where you are anyways required to invest within 6 months, where is the need for a CGAS. if you dont invest in 6 months it anyways becomes taxable.
where you are anyways required to invest within 6 months, where is the need for a CGAS. if you dont invest in 6 months it anyways becomes taxable.
05 March 2014
for sec 54EC it must be invested within 6 months from date of transfer and not sale...
05 March 2014
Thanks Nikhil..
got it..
so if I invest in Bonds on 1st march then i will have a time period for investing the amount only 5 months (i.e from March to 31st July)and i will loose benefit of 1 month.
But if I had CGDS Account I would be able to deposit in that and would be able to extend my time period by one month.
Right?
got it..
so if I invest in Bonds on 1st march then i will have a time period for investing the amount only 5 months (i.e from March to 31st July)and i will loose benefit of 1 month.
But if I had CGDS Account I would be able to deposit in that and would be able to extend my time period by one month.
Right?
05 March 2014
sorry. did not understand your query. if you have invested on 1 March, what time period you looking for after that?
05 March 2014
sir
Isnt there a need to invest the amount in bonds before ITR due date?
Isnt there a need to invest the amount in bonds before ITR due date?
05 March 2014
no actually there is no direct such provision but 2 things u should keep in mind if u want benefit u/s 54EC
1.invest within 6 months from date of transfer of capital asset.
2.must invest between 1.4.2013 - 31.3.2014.
1.invest within 6 months from date of transfer of capital asset.
2.must invest between 1.4.2013 - 31.3.2014.
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