54EC BONDS INVESTMENTS FOR LONG TERM CAPITAL GAINS

The short answer is no, he cannot claim the additional ₹50 Lakhs exemption. While the strategy you mentioned was a common and legal tax-planning loophole several years ago, the Income Tax Department has since amended Section 54EC to close it.

Limit of Sec 54EC EXHAUSTED.

Investing Rs 50 lakhs in 54EC bonds within 6 months of the land sale shelters that portion of LTCG. For the remaining Rs 72 lakhs, Section 54F is worth considering: if you do not own more than one residential house apart from the new one you plan to buy, reinvesting the net sale consideration proportionately in a new property exempts the corresponding gain. Both 54EC and 54F can be claimed on the same land sale simultaneously. For the full breakdown including eligibility conditions and Capital Gains Account Scheme timelines, this [capital gains exemption guide for Sections 54, 54F and 54EC](https://taxgarden.in/blog/capital-gains-exemption-section-54-54f-54ec) covers each provision step by step.

   Want To know  to avoid LTCG , whether Section 54F allows buying a open land / plot ( no construction)   or a commercial property  in lieu of LTCG . I feel  Buying a new  resi property  just for the sake of exemption -adjutment towards 54F , is not  worth , as  being having more than 1  residential property and secondly maintaining it / renting , a new resi.property  seems to be cumbersome and tedious exercise to do  .

@ S S Dahale

As far as my knowledge goes, 54F exemption on LTCG applies only to RESIDENTIAL PROPERTY [House or Flat]. Only Once in life per tax payer and max amount limited now to 10 Crore LTCG.

Residential land or Commercial Property is not included for 54F exemption.

54EC bonds are still pretty useful if someone wants safe capital gains tax relief, but the lock-in period and low interest rate make them more of a tax-saving tool than an actual investment strategy. ()