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Urgent help req on sec 54ec bonds...pls help..

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Priya Mehta

CA & CS FINAL Article Assiatant

185 Points Posted on 15 January 2012

Sir/mam, There was a sale of afgricultural land taxable under income tax act 1961, in the FY2009-10 AY 10-11 and it was in the name of ma Granny (80yrs).

V had invested all the sale consideration in 54EC-REC BONDS whic is notified under sec54EC of income tax act.Such bonds wer in the name of Ma Granny , ma mom and dad and it was properly invested within 6months form date of transfer.

Ma queryy is She died in the yr2011 sowe havent filed the return as nothin is taxable but now do v need to remove ma grannys name from the bonds? Is der any implication on exemption unders sec54ec due to her death? Pls reply as m in trouble?

Replies (3)

meabhijit

Project Manager

118 Points Posted on 15 January 2012

The 54EC bonds are capital gain exemption bonds but the intrest of these bonds is taxable. So return need to be filed to indicate such an income. Since your granny is no more, the nominee of listed owns the bonds on her name. If a will is written then the transfer is as per will..if no will legal heirs will be owning the bonds.