Section 54EC - Capital Gain exemption

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Rajat (Querist)
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30 September 2008 Assessee sold an asset on 25th March 2008 and booked long term capital gain of Rs 5 lac.

As per Section 54EC to claim exemption he needs to invest Rs 5 lac in NHAI/REC bonds within 6 months i.e. before 25th Sept 2008.

But he needs to file his return by 31st July. So can he open Capital gain A/c in July'08 and deposit that 5 lac for time being? Subsequently in Sept'08 he will invest that 5 lac in stated bonds.

I am asking this because I heard - to claim exemption u/s 54EC, assessee doesnt have the option to open Capital gain A/c. He has to compulsorily invest it in stated bonds before the due date of filing return.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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30 September 2008 He should deposit the proceeds in account opened Capital Gain Scheme,1986 and claim the exemption. Lateron the amount may be invested in Bonds by withdrawing the amount from the relevant deposit account