Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Section 54ec

120 views 1 replies

shalini

Partner

43 Points Joined May 2018

Dear All

Can anyone elaborate on the following point of Sec 54EC, with any relevant case-

Maximum Amount of Investment:

Investment in bonds is limited to Rs. 50,00,000/-. The investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees.

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210177 Points Joined July 2016

Before the amendment, assessee were allowed to invest 50 lakhs each per annum but within six months of transfer of capital asset. So, assessee used to invest 50 lakhs each in two different FYs (though within six months) and claiming exemption of net 1 cr. over same event.

The same has been capped at 50 lakhs exemption PA per transaction/s of any year.