26 June 2012
U/c 54EC provides exemption for LTCG,If,Amt. of such gain invested notified bond within 6 months.but my question is,if Amt recd.in advance befor registered sale deed of property and money is soon deposited in prescribed bond U/s 54EC.then what,can i takes this exemption?
Capital gain is taxable in the year in which transfer takes place u/s 45. Advance receipt is not taxable and 6 months for investment u/s54EC shall be recognised from the date of such transfer. In your case, you have received advance towards sale of propety but the property in assets or the possession is transferred lateron. Investment should be made within 6 mmonths from the date of transfer and registration date is not to be considered.
26 June 2012
Exemption u/s 54EC on investment made before transfer not allowable. (Smt. Dakshaben R. Patel v. ACIT-IT APPEAL NO. 2803 (AHD.) OF 2011 [ASSESSMENT YEAR 2008-09]-MAY 31, 2012)
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