Section 54ec

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 May 2015 An assessee invested in bonds u/S 54 EC, he died before the maturity date of such bonds. whether the bonds can be redeemed by the legal heirs before the maturity date? if redeemed, whether they are taxable in the hands of legal heirs?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 May 2015 1. you cannot redeem before 3 years lock-in period.

2. there wont be any tax impact at the time of redemption

3. you can apply for transmission of bonds in the name of legal heir.

please refer Question 7 on this page http://rec.rcmcdelhi.com/faq.php