27 July 2012
NHAI Bonds are for Capital Gain Deduction under section 54EC -
(iv) Capital Gains not chargeable on investment in certain bonds [Section 54EC] Eligible assessee – Any assessee Conditions to be fulfilled There should be transfer of a long-term capital asset. Such asset can also be a depreciable asset held for more than 36 months. The capital gains arising from such transfer should be invested in a long-term specified asset within 6 months from the date of transfer. Long-term specified asset means specified bonds, redeemable after 3 years, issued by the National Highways Authority of India (NHAI) or the Rural Electrification Corporation Limited (RECL). The assessee should not transfer or convert or avail loan or advance on the security of such bonds for a period of 3 years from the date of acquisition of such bonds.
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