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Sec 54ec

K.S.Raghu (Private service) (44 Points)

19 March 2014

Greetings

As per Sec 54EC to claim exemption for 3 years for LTCG the proceeds are to be invested in RECL/NHAI with in 6 months of the sale of the capital asset . If the inversment is made after 6 months say in 8th/9th month is the exemption still avilable? Pls clarify my doubt.

Thanks

Raghu

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11 Replies

Anjan (Chartered Accountant) (69 Points)
Replied 19 March 2014

Dear Raghu,

The Investment has to be made within 6 months from the date of transfer in order to be eligible for claiming the benefit of deduction u/s 54EC.

Any investment made after the 6 months period will not be eligible for deduction u/s54EC

1 Like

CA SUKSHAM ARORA (CA) (569 Points)
Replied 19 March 2014

ACCORDING TO ME , IT IS NOT ELIGIBLE FOR DEDUCTIONS

1 Like

Vikas (Practicing Chartered Acountant) (79 Points)
Replied 19 March 2014

Not Eligible

1 Like

varun (ca) (27 Points)
Replied 19 March 2014

It's clearly stated that time limit for new investment shall be 6 months

Sathya Sankeerth K N (Chartered Accountant) (429 Points)
Replied 19 March 2014

Dear Raghu,

Investment has to be made within 6 months but if you can prove that there were no issues made by NHAI or RECL you can invest the fund at the near earliest issue of bonds by NHAI / RECL.

Girish C Gaikwad (Chartered Accountant) (55 Points)
Replied 19 March 2014

No, exemption is not available if you invest in bonds after 6 months of sale of capital asset.

Preeti (Practising CA) (29 Points)
Replied 19 March 2014

Dear Raghu, Sathya is correct.

hemant (director) (21 Points)
Replied 19 March 2014

In that case my opinion is that you are not eligible.

Akshay Khurana (student) (22 Points)
Replied 20 March 2014

No xemption on investment made after 6 months of date of transfer will be allowed. Max limit 5000000

CA SUKSHAM ARORA (CA) (569 Points)
Replied 20 March 2014

DEAR SATYA ,

DO YOU MEAN EVEN AFTER SIX YEARS ?

IF IT IS SO , THEN PLEASE CAN YOU PLEASE PROVIDE ME ITS SOURCE...

santhosh kumar (article student) (84 Points)
Replied 20 March 2014

Dear KS Raghu. No doubt if the the investment is made after 6 months from the date of transfer is not eligible for exmeption u/s 54EC.But it again depends upon the facts of case.With in the span of 6 months form the date of transfer if there were no issues of NHAIL or REFC the time limit of 6 months will get automatically extended.It was held in Recent case LAW CIT vs. Cello Plast (Bombay High Court)