54 EC - Whether can be withdrawn during lock in period

This query is : Resolved

Baju Joy (Querist)
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24 February 2010 Dear all

Investment in 54EC bonds should be made with in six months from the date of sale.
Now a case arise in my company, we have a Long Term capital gain from the sale of immovable property. Gain computed and invested in 54 EC (REC) bonds.

Now we have long term capital loss occured after the investment.

Whether can be withdrawn the investment done in REC bond during lock in Period.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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24 February 2010 normally the bonds also contain the lock in period clause and in my opinion it can not be withdrawn during lock in period.

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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24 February 2010 I think no.....

Because LTCL can be set-off only with relevant previous year's LTCG.

But suggetions of Other Experts should be also considered.

Regards!!!

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Baju Joy

Baju Joy (Querist)
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30 March 2010 Dear all

Thanks for your sugestions