Exemption U/s 54EC

Gargi Ranade (CS) (614 Points)

26 February 2011  

Dear All,

Section 54EC talks about capital gain not to be charged on investment in certain bonds .

Provision states that  within 6 months from asset is transfered , the assessee should invest the whole or part of capital gain in NHAI  or REC bonds however assessee can invest during any financial year to the extent of  Rs. 50 lacs .

My query is - if persons capital gain comes to 2 cr. then can he invest 50 lacs  in one F.Y. & 50 Lacs in another F.Y. within 6 months from the date of transfer?

if not what is intention of provision in adding words in F. Y.