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Section 54EC time limit

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Kumaran Durairaj

15 Points Posted on 24 June 2021

I understand the bonds are deemed to be allotted at the end of the month. So if I sold a property on 28th dec and apply 54EC on June 25th , I will get the bonds on 30 th June , after 6 months from sale of property. So which date should be considered for calculating 6 months.date of allotment or date of application .

and also is it possible to apply online?

Thanks

Replies (2)

Quick Summary

This discussion clarifies the crucial 6-month time limit for Section 54EC investments to qualify for capital gains tax exemption. It addresses whether the date of application or the date of bond allotment is considered for this period. The content also touches upon the possibility of applying for these bonds online.

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Posted on 24 June 2021

Section 54EC states that if the profit made on sale of a long-term capital asset – whether an immovable property or shares and stocks – is invested by the taxpayer in 'long-term specified assets' within 6 months of the sale, then the capital gains are exempt from taxation.

“Long-term specified asset” for making any investment u/s 54EC means any bond redeemable after five years and issued by National Highways Authority of India (NHAI) or by Rural Electrification Corporation Limited or any other bond notified by central government.