Capital Gains and 54EC

This query is : Resolved

Sunil (Querist)
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05 December 2020 Say I have sold a property on 1/jan/20 having capital gain of 50 lakhs and
another on 1/sep/20 having similar capital gain of 50 lakhs.

Can I avoid capital gain tax by investing in 50 lakhs in bonds on 1/5/20 and another 50 lakhs on 1/oct/20. If this is not allowed because I cannot invest more than 50 lakhs in a FY,

Can I invest 50 lakhs on 1/mar/20 and 50 lakhs on 1/oct/20 to avoid capital gain tax on both sales?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 December 2020 unfortunately no. The proviso to the section restricts Rs 50 lakhs investment for the year of sale of property as well as the next year. So in nutshell you can only invest Rs 50 lakhs in FY 2019-20 and 2020-21.