Capital gain sec.54 & 54 ec

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2017 Dear sir,
Suppose Mr. X having two houses in which one of them was received as gift. Now he sold these two houses.
Ex:
House A- Rs.1crore Jun-17
House B- Rs.30lacs (sale date Dec-2017
He invested the money in NHAI bonds of Rs,50lacs and purchased a flat of Rs.30lacs. Can he invest the amt received from house b in NHAI bonds in next year Apr-18?

Calculation
Sale Value : 1cr
Indexed COA :11lacs
Balance amt 89 lacs
Invested in : 50 lacs
Nhai

Invested in
Property :39lacs
Balance amt : 11 lacs (Can he invest in another asset or he has to pay CG tax)

House B:
Sale Value :29lacs
Indexed COA :10lacs
Balance : 19 lacs (Can he invest these funds in NHAI in next year)

Sumeet

Sumeet (Expert)
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05 December 2017 Hello,

As per the provisions outlined under Section 54EC, the maximum amount of investment that an assessee can make in long-term specified assets or bonds mentioned under Section 54EC, cannot be more than Rs 50 lakhs over the duration of a financial year. However, it should be noted that the period of six months from the date of the transfer of the asset, during which the capital gains investment must be made, cannot include any portion of the following financial year.
In other words, if Long Term Capital Gain arises in a single financial year total benefit under section 54ec will be limited to 50 lakhs and excess investment benefit cannot be claimed even if more investment is made in subsequent financial year.

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2017 Can't understand. Pls explain in detail

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Sumeet

Sumeet (Expert)
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06 December 2017 Benefit through investments in NHAI bonds cannot be more than 50 lakhs against capital gain arising in single Financial Year. So for House B, balance of 19 lakhs cannot be invested in NHAI bonds next year.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 September 2021 No. For AY 2018-19. maximum allowable investment as per Sec. 54EC for all the properties' transfer is capped at Rs. 50 lakhs. For the same asset transfer, he cannot invest the balance in AY 2019-20.