Capital gains - 54ec

This query is : Resolved

C.Balaji (Querist)
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26 October 2012 Suppose, I sell a House property in the month of November and i propose to invest the proceeds in 54EC bonds. As we all know, the amount should be invested within 6months from the date of transfer.

My query is, Can i use the fund by depositing in any FD and gain interest (or any other purpose) before investing in Capital Gain Bonds? Finally investment made in CG bonds within 6months.

that is, can i use the funds before investing in Capital Gain Bonds within 6months? I will be investing in the 6th month..

Can i do like this? Is it allowed to utilise the funds before investing in CG bonds?

C.Balaji

C.Balaji (Querist)
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26 October 2012 Does Income tax Act contains any Provision regarding the above query? Or any case law?

CA Manish

CA Manish (Expert)
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26 October 2012 Yes, You can invest the fund any where within the six month but before filing the return you have to invest the fund into specified bonds.

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C.Balaji

C.Balaji (Querist)
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26 October 2012 Dear Friend. Thanks for the reply.
Are you sure there are no restrictions in utilising the Proceeds under the Income Tax Act?

CA Manish

CA Manish (Expert)
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26 October 2012 The Act given you the six month period for investing into the specified period.

There if no restriction for investing the fund into other mode provided you have invested in the specified bond in compliance with provision of sec 54EC.