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Preclosure of 54EC bonds

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Siva

engineer

41 Points Posted on 22 March 2021

I have sold residential land in Oct'19 and used the capital gain [some % of it] to buy the 54EC bond rest I have parked in Capital Gain account. The same has been declared during iTR filing in FY 2019-20 and got acknowlegement from the Income Tax authorities also.

Now I have an opportunity to invest in a real estate property. I have the window upto Oct'21. Is there a way to preclose the 54EC bonds and use that amount for buying the property. If so what is the procedure like refiling FY 2019-20 ITR etc and can the experts explain.

Thanks.

Replies (2)

Quick Summary

This discussion explores the possibility of preclosing 54EC bonds to access funds for a new property purchase. The original poster sold residential land, invested a portion in 54EC bonds, and declared this in their FY 2019-20 tax return. They have a window until Oct'21 to buy a new property and are seeking information on whether preclosing the bonds is feasible and what the procedure would entail, including any necessary ITR refiling. However, the consensus suggests there is no provision for preclosing 54EC bonds.