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CA Jaydeep Vaghela (Querist)
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25 February 2014 I have capital gain of Rs 3,00,000 in F.Y.2012-13 by sale of residential house. Can i avail tax exemption by purchasing tax free bonds ? and if yes, then which one i should subscribe ? and if you have any other way of availing exemption then let me know that too.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 February 2014 1. Yes you can avail exemption u/s 54EC by investing in bonds.

However the capital gain has to be deposited within 6 months from the date of transfer.

2. You can also avail exemption u/s 54 by investing the capital gain in a residential house property.

CA Jaydeep Vaghela

CA Jaydeep Vaghela (Querist)
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25 February 2014 But sir do i have any subscription option right now ? i want to invest it as soon as possible. I have heard of RECL TAX FREE BONDS coming up so what should i do ?

Upgrade to CAclubindia Pro. Subscribe Now!

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 February 2014 Since the house was sold in FY 2012-13, the time limit for investment in bonds has expired.
You CANNOT avail exemption u/s 54EC now.

CA Jaydeep Vaghela

CA Jaydeep Vaghela (Querist)
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25 February 2014 I m sorry it is F.Y 2013-14 just sold before A month.

CA Jaydeep Vaghela

CA Jaydeep Vaghela (Querist)
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25 February 2014 I just want to know is any new subscription coming up to take advantage of 54EC.