Section 54EC

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2011 If the indexed cost of acquisition of shares is Rs. 275 lacs and the sales consideration of Rs.400 lacs is received in November,2010,what is the deduction permissible under Section 54EC of the Income Tax Act ?

According to me,Rs. 50 lacs in FY 2010-11 and Rs.50 lacs in FY 2011-12 are exempt as Capital Gain.Please confirm that in total Rs. 100 lacs are exempt.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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03 February 2011 Decudtion u/s 54EC will be limited to Rs. 50 lacs abd it will be allowed only once in the financial year 2010-11.

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2011 Deduction u/s 54EC is available upto Rs. 50 lacs in each Financial Year.In the given case,the transfer of the shares took place in November,2010 and the time limit of six months for investment in the specified bonds spils into the next FY 2011-12.Therefore,decuction of Rs. 50 lacs in eah financial year can be claimed.

Can anyone confirm this ?

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