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Capital gain Query

02 December 2020

Can we avail the benefit of exemption under section 54F, 54EC on sale of capital asset which earlier converted into stock in trade and later sold ?

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5 Replies

sabyasachi mukherjee (27409 Points)
Replied 02 December 2020

Sec 54EC is applicable only when there is a transfer of capital asset (house) and investing the sale proceeds in infrastructure bonds.

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Aakansha Jain (18 Points)
Replied 02 December 2020

In definition of section 54EC capital asset is mention which means all capital asset under section 2 (14) , not only house

SiJo JoSe (24 Points)
Replied 02 December 2020

Yes.
54F if invest in Hp
54 EC for investing in specified investment instrument.
coverted asset can be treated as longterm & profit as longterm capital gain

ayusmita (Tax consultant) (5885 Points)
Replied 03 December 2020

Sec 54F, 54EC, all are for land building and flats yes an assessee is eligible for capital gain exemption U/S 54F of the act of the investment is done when converted stock in trade is sold

sabyasachi mukherjee (27409 Points)
Replied 07 December 2020

The law stands correct as per Sec 54EC.
All capital asset transfer.
But , I have told u the general trend.
Sec 54 F, Sec 54 EC stands for availng exemption on transfer of capital asset and availing benefit out of it .