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Deduction u/s 54EC

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PVS Sastry

FCA

47 Points Posted on 01 March 2021

Hi friends,

Whether deduction under Section 54EC of the Income Tax Act, 1961 is available even if investment was made before transfer of Long term Specified Asset. Kindly clarify my doubt along with case laws if any as soon as possible.

Replies (4)

Quick Summary

This discussion clarifies whether a deduction under Section 54EC of the Income Tax Act, 1961, is permissible if the investment in specified assets is made before the transfer of the original long-term asset. The consensus is that the investment must occur within six months of the asset's transfer to qualify for the deduction, meaning prior investments are generally not eligible.