Section 54EC of the Income Tax Act says the amount of capital gain should be invested within 6 months from the date of transfer to avail this exemption. My two scenarios are as follow:
Scenario 1 - Mr. A sold a flat on 21/03/2024. So he can invest the capital gain amount in 54EC-eligible bonds till 20/09/2024. But since the due date of filing his ITR is 31/07/2024, this investment is required to be done before 31/07/2024. Am I right?
Scenario 2 - Mr. A decides to invest the capital gain amount in the New house property. For resale property, he has a time limit of 2 years after the sale of the old property i.e. up to 20/03/2026 OR he can invest in self-construction or under-construction property till the end of 3 years after the sale of the old property i.e. up to 20/03/2027. Therefore, he keeps this capital gain amount in the Capital Gains Deposit account scheme. But just before the completion of 2 years, on 01/03/2026 he decided not to invest in new property. So my query is that: Can he NOW invest this capital gain amount kept in the Capital Gains Deposit Account Scheme (before the completion of 2 years) in 54EC-eligible bonds? or this option is gone and the capital gain not invested would be taxable in 2026?
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