If an individual invested in REC bonds to get the exemption under section 54EC on LTCG. Is it compulsory to buy property after 3 years from the maturity amount received after 3 years from the bond?
Kiran. S
(CTO)
(745 Points)
Replied 18 July 2017
1) Max limit of NHAI/REC bonds is 50 lakhs in a Fin year.
2) Within six months of selling an asset one should buy these bonds. In these six months the gains part should be kept in CGA account of any Nationalised bank.
3) Int from these bonds are taxable.
4) Investing in these bonds itself means no need to buy any other asset.
5) Only individual or HUF can avail this benefit
Dhruv Shah
(Article Student)
(357 Points)
Replied 18 July 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160332 Points)
Replied 18 July 2017
Yes, the redemption proceeds of 54EC bonds is completely taxfree (except interest earned annually), and hence no need for any secondary investment for exemption u/s. 54/54F
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