Capital gain

This query is : Resolved

Nilotpal (Querist)
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01 January 2016 U/s 54 EA net amount of Long Term Capital Gain if invested in notified bonds,debentures or units of Mutual Fund are exempted from tax liability. What are the names of such Notified Bonds, MF etc.? Are such bonds.debenture etc.are sold by Nationalised Bank ? Is there any lock in period for such bonds,mf etc.?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 January 2016 As I know, this section is not of practical relevance now as it talks about the capital gains arising before 01.04.2000. You may concentrate upon Section 54EC for getting exemption upto Rs 50 lac. Lock in period of 3 years. This section has been introduced from assessment year 2001-2002 onwards. It provides that if any long term capital asset is transferred and out of the consideration, investment in specified assets (any bond issued by National Highway Authority of India or by Rural Electrification Corporation redeemable after 3 years), is made within 6 months from the date of transfer, then exemption would be available.