54EC
Querist : Anonymous
Now my query is can I put 50 L in Govt. Bonds such as REC or NHAI in this financial year and put another 50 L in April? thus claiming rebate of 1 Cr.As per I.T Act,maximum amount can be invested is 50 L per FINANCIAL YEAR.
Querist : Anonymous
Querist : Anonymous
But I feel that if the assessee prefers to do so by availing the celing of Rs. 1 crore by investing Rs. 50/- lakhs each in two financial years,it would mean that the law gives an additional benefit for those who postpone the transaction to the last quarter of the financial year thereby creating an adventurous situation inviting the risk of rejection by the income tax department.
http://www.pdicai.org/ansDisp.aspx?queId=12434
http://finance.dir.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/message/61539
http://www.etaxindia.org/2009/09/capital-gain-exemption-us-54-54b-54d-54ec-54f-54g-54ga-table.html
This Opinion is at Par with ICAI also sincein the Recent attempt of CA Final similar Question was Put and Suggested Answers of ICAI suggests that Rs 1 Crore can be Availed.
As far as Scrutiny is Concerned , I Think if we are technically interpreting the law correctly then no point of being afraid of appraisal.
Thanks for the Compliment. Try to Search out some Case Laws if u can but i am sure , Considering the language of the Act and its interpretation Rs 1 Crore can be Availed.
Regards
Ankit Gulgulia
54(1)(b) - "whole of such capital gain shall not be charged U/s 45 "
.
"Whole of" means entire, and entire may be greater than 50.00 lac.
.
It shows that capital gain exceeding 50.00 lacs is also exempt. It does not restrict
the amount of exemption as such.
*
In the absence of any cap in the main clause, it is reasonable to construe that the exemption amount is not limited to Rs 50.00 lac.
*
In Income Tax "Financial Year" and "Previous Year" phrases have their own relevance.
*
The use of the phrase "Financial Year" shows that if assessee invests more than 50.00 lacs in a FY he will get exemption of Rs.50.00lac only. As such the cap is for the purpose of maximum amount of
investment.
*
So we should not get confused with the
" exempted amount of capital gain"
and " exempted amount of investment".
Querist : Anonymous
But do you agree that I can go ahead with my plan as explained above?
On behalf of Dear Paras Bafna and Dear Ankit Gulgulia you can
GO AHEAD WITH
your plan as explained hereinabove
because
I also GO AHEAD WITH their expertise.
We all give advance congratulations to you for your new flat.
(Some authors give advance thanks to the experts at caclub without knowing the person who is likely to answer - hope you are not among them).
Querist : Anonymous
Many thanks for sharing your thoughts.
It feels like we won "one crore" (ek crorepati ka dil).
Regards.
Click here to login now
Similar Resolved Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
