Please advice me on section 54ec of the income tax act,1961.

Tax queries 1575 views 8 replies

CA Sunil Kumar Parjapati

ACA Senior Manager- Accounts & Finance

224 Points Joined March 2008

My question is this , whether we can claim exemption under section 54EC more than 50 lacs.

suppose i have got long term capital gain of Rs. 80 lacs in 1st Jan 2011 and that i wan to invest in specified assets within 6 months from the date of transfer.

Now can i invest 50 lacs till 31st march 2011 and rest 30 lacs till 30th june 2011.

As my interpretation of this section says that "the amount of investment shall not exceed Rs. 50 lacs in any financial yea. Hence i can invest maximum rs 1crore within 6 months specified in the law !!!

Please clarify ( along with specific case or anything reliable )

Thanks for concern

Sunil Kumar

Replies (8)

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

Yes

/experts/sec-54ec-ltcg-exemption-330500.asp

https://www.mumbaipropertyexchange.com/News/NewsDetail.aspx?id=1512

Jayamanoj

Senior Audit Executive

40 Points Joined August 2009

Yes, Sunil there is no doubt you can invest 50L within 31st March and another 50L anytime between April to June in bonds mentioned in 54EC

amit jain

Chartered Accountant

532 Points Joined July 2008

yes you can do it

CA Sunil Kumar Parjapati

ACA Senior Manager- Accounts & Finance

224 Points Joined March 2008

Thank you for your time and response !

CA Gaurav Choradia

Relationship Manager

418 Points Joined August 2009

Yes dear u are absolutely right....

very well interpreted

"the limit is for a financial year"

Sony

Articled assisstant

25 Points Joined March 2012

an assessee invests money received from sale of residential site Rs.71lacs earns LTCG Rs.64lacs, he invests such gain partly in bonds in a nationalised bank Rs.41Lacs for less dan 1 yr and partly invests in purchase of new site Rs.25 Lacs within 3 months.

old site was purchased in 2004-05 and sold in 2009-10 (FY)

My question is,

how much exemption can b claimed ? after maturity of such bonds, construction on new site takes place, what r d criterias to b followed here ? does gain invested in bonds has limit tat for prescribed period it should nt b used or should b utilised wit in so n so period ? how to deal with dis ?

kindly help.

Suraj Daivajna

Co-Founder

21 Points Joined January 2008

Hello !! Are there covered case laws vindicating the above stand ?? I would be grateful for any help on the above as the case is at appeal level now.

C.Balaji

Learner

1867 Points Joined October 2008

I will look out for case laws. but u pls go through the Finance Minister Budget speech financial year 2007. It has been referred like "Per investor per year" and not simply "per investor".. The limit " in any financial Year"...