Date of investment of 54 EC Capital gains bonds

To avail capital gains exemption, investment in 54 EC Capital gain bonds are to be made within 6 months. The six month period ends on 17th April 2024. Though the investment can be made online before 17th April, allotment of bonds will be made only on the last day of the month, viz 30th April.
In such a case, will the nvestment qualify for capital gains exemption as allotment date is beyond the due date for investment?

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Quick Summary
This discussion clarifies the investment deadline for 54EC Capital Gains bonds to avail tax exemption. The crucial six-month period runs from the date of asset transfer, and the investment is generally considered valid from the date of payment, even if bond allotment occurs later. It's important to note that while online investment can be made before the 17th April 2024 deadline, bond allotment might be on the 30th April. Keep all payment proofs as evidence of timely investment.

Post actual datas this is not an zctual forum

The 6 months runs from the transfer date:

• Sec 54EC: invest within 6 months from the date of transfer of the original asset (registration date, or the earlier date when possession was handed over under a contract, per Sec 2(47)(v)).

• Date of investment: tribunals have generally accepted the date of payment (cheque or transfer to the issuer) as the date of investment, even if bonds are allotted later. CBDT (Circular 3/2008 and related) also treats payment within 6 months as compliance. Keep the payment proof.

• Bonds (REC, PFC, IRFC, NHAI) are open throughout the year, subject to the Rs 50 lakh limit per assessee for the transfer, spread over two FYs.

• If the 6-month deadline falls on a holiday, invest a day earlier. Courts are strict on this time limit.

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