combined exemption -54EC & 54F

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sailesh (Querist)
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13 January 2011 1.Is it correct to claim exemption under 54EC & 54F (together)
(all conditions are satisfied)
If yes
while calculating exemption u/s. 54F LTCG shall be taken as whole amount or as reduced by 54EC exemption

2. whether 54f & 54EC is eligible on STCG arising due to sale of depreciable asset (long term)

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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13 January 2011 Yes one can claim exemption u/s 54EC and 54F together

Profit on sale of depreciable assets is always treated as short term irrespective of the holding period.Therefore 54f can not be claimed.

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sailesh

sailesh (Querist)
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15 January 2011 1.Is it correct to claim exemption under 54EC & 54F (together)
(all conditions are satisfied)
If yes
while calculating exemption u/s. 54F LTCG shall be taken as whole amount or as reduced by 54EC exemption

2. whether 54f & 54EC is eligible on STCG arising due to sale of depreciable asset (long term)

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CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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16 January 2011 1. You have to claim both the deduction against the LTCG. First deduction u/s 54EC
and 54F against balance amount.

2. No deduction is not allowed against STCG.

sailesh

sailesh (Querist)
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17 January 2011 1.Is it correct to claim exemption under 54EC & 54F (together)
(all conditions are satisfied)
If yes
while calculating exemption u/s. 54F LTCG shall be taken as whole amount or as reduced by 54EC exemption

2. whether 54f & 54EC is eligible on STCG arising due to sale of depreciable asset (long term)

sailesh

sailesh (Querist)
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17 January 2011 54EC can be availed for STCG arising from transfer of LT depreciable asset