Whether REC 64EC Bond allows indexation of resale property

Whether REC 64EC Bond allows indexation of resale property
A.Sundaram
Replies (5)
Quick Summary
This discussion clarifies whether REC 54EC bonds can be used to exempt capital gains tax arising from the sale of a resale property. The consensus is yes, provided the property has been held for over two years, allowing for indexation to calculate long-term capital gains. The investment in REC 54EC bonds must be made within six months of the property sale and should cover the amount of the long-term capital gain.

Yes, after indexation of property held for more than 2 years, the LT CG is arrived. The tax over it can be exempted by investment in REC 54EC bond.

Limit is 5000000/- per assessee
The doubt is I sold a property fir 41 laks After indexation the cost comes around 21 laks Whether we need to take REC 54EC Bond only for remaining 20 laks?

Correct... within six months from the sale of the property...

Yes you need to invest amount equal to LTCG I.e 20lakhs in your case.

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