Captial gains 54EC

Originally posted by : SOUMYA RANJAN PANDA, CA FINAL
	yes he can take exemption of Rs. 1 crore in the current assessment year, as the section restricts the maximum investment amount to 50 lakhs, not the exemption amount.

IN THE SIGHANIA SIR BOOK THE LINES CLEARLY MENTION 

THE INVESTMENT MADE ON OR AFTER 1-4-2007 NOTED ABOVE BY AN ASSESSEE DURING ANY FINANCIAL YEAR CANNOT EXCEED 50 LAKHS 

What you are saying is also correct but the capital gain cannot be taken on the same asset . in that question assessee had sold one house so maximum amount allowed is 50 lakhs. if the assessee in had sold one more house in next year then he could avail another 50 lakhs. but not on the same property. what you are saying in law amounts to tax avoidance, using loopholes of law.

rest if anymore suggestion there then most welcome

As per my knowledge exemption amount cannot exceed Rs. 50 Lakh against section 54EC of Income Tax Act, 1961.

Thanks

yes it may be a loopholes, but i m saying it as it is being interpreted from the act.......its my opinion only.....

From a  plain reading of the section, which reads that one can invest upto 50 lacs in a financial year from which makes me feel that if a person invests 50 lacs in march and another 50 lacs in april and that both the investments are within 6 months of the transfer then a total of 1 crore can be allowed as exemption!!

KULDEEP SHARMA - can u substantiate ur answer please....

Originally posted by : kuldeep sharma
	IN THE SIGHANIA SIR BOOK THE LINES CLEARLY MENTION  THE INVESTMENT MADE ON OR AFTER 1-4-2007 NOTED ABOVE BY AN ASSESSEE DURING ANY FINANCIAL YEAR CANNOT EXCEED 50 LAKHS  What you are saying is also correct but the capital gain cannot be taken on the same asset . in that question assessee had sold one house so maximum amount allowed is 50 lakhs. if the assessee in had sold one more house in next year then he could avail another 50 lakhs. but not on the same property. what you are saying in law amounts to tax avoidance, using loopholes of law. rest if anymore suggestion there then most welcome

 KULDEEP SHARMA - can u substantiate ur answer.....

Originally posted by : Sona Shalini
	KULDEEP SHARMA - can u substantiate ur answer please....

hello sona what i meant to say is , 

that a assssee can claim exemption upto 50 lacs in a financial year it is in case of that same capital asset, the assessee  cannot take advantage of the financial year if another financial year starts with in 6 months of the sale of same asset. if the assessee should have sold some other long term asset  then he could claimed another 50 lacs as exemption under 54EC but not on that same house. so maximum allowed deduction is 50 lacs on that same asset.

this is what i think, what others are saying is point of debate so to be on safer side give maximum exemption of 50 lacs.

Already Soumya ranjan pandan has clarified the point that there is no investment limit. So we should consider their point too which is obvious in law. 

Derar kuldeep

Girish Ahuja sir gave us an example on this issue also  . According to him 1 crore is allowed as exemption. There is no restriction on exemption . Only investment amount is restricted .

Thank u Ankit. I think i wrongly typed it as "no limit for investment" sorry its actually  "no exemption limit"

Thank u all for ur inputs....

Originally posted by : Sneha..sunshine..
	yes but he has to submit the amount in SBI capital gain a/c...then only he can claim exemption...in case he doesnt invest the amount within 6 months from teh date of transfer the balance amount in the fund will become taxable.... regards..

agreed

assessee has, at any time within a period of six months after the date of such transfer, invested the whole or any part of capital gains in the long-term specified asset, is eligible for exwmption

can amalgamated company carry forward unabsorbed expenditure of capital nature on scientific research of amalgamting comp if conditions are satisfied ???

Originally posted by : ankit
	can amalgamated company carry forward unabsorbed expenditure of capital nature on scientific research of amalgamting comp if conditions are satisfied ???

i thinks the amalgamated company can carry unabsorbed depreciation and all losses....i think unabsorbed capital expenditure can also be carried forward...wait fr expert's comments...