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CApital gains deduction u/s 54EC

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Vipul Gupta

7 Points Posted on 19 August 2025

hi All,

Please help in answering below query related to capital gains deduction u/s 54EC.

CAse - Mr. A has sold property on 30.04.2024. LTCG calculated after indexation - 25 lakh. Sec 54EC REC Bonds applied for 25 lakh on 29.09.2024. Money debited from bank on 01.10.2024. Bonds allotted on 31.10.2024.

a. Is Mr. A eligible to get exemption u/s 54EC?

b. If yes, how much?

Replies (3)

Quick Summary

This discussion clarifies eligibility for Capital Gains Tax deduction under Section 54EC. Mr. A sold a property on 30.04.2024, incurring a Long Term Capital Gain (LTCG) of Rs. 25 lakh. He invested the full amount in REC Bonds on 29.09.2024, with funds debited on 01.10.2024 and bonds allotted on 31.10.2024. The consensus is that Mr. A is eligible for the full Rs. 25 lakh exemption, provided all other compliance requirements for Section 54EC are met.