Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

54 EC prevlosure teg

282 views

Save Share

Join Us Follow Us Add as Source

ayyam sundaram

33 Points Posted on 09 March 2023

Whether Tax Exception is available for Preclosure of 54 EC bond for purchase of house within stipulation 3 years.

Replies (2)

Quick Summary

This discussion clarifies that preclosing a 54EC bond before its maturity date to purchase a house is generally not permitted. If you've taken a loan against these bonds, the previously claimed tax exemption will be taxed as capital gains in the year the loan was taken.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 09 March 2023

No, not possible.

CA Sorav Gupta

Chartered Accountant

1005 Points Posted on 10 March 2023

The 54EC bonds cannot be closed before maturity by the assessee.

If you have taken the loan against these bonds by keeping them as security, then the exemption availed earlier will be taxed as capital gain in the previous year in which the loan has been taken.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)