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Capital Gains exemption (54EC and EE)

26 January 2019

If Asset was sold on 30.3.18
and specified asset was purchased on 5.8.18
(after due date of ROI which was 31.7)
will exemption be allowed or not?

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16 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 26 January 2019

if the capital gains on sale if long term capital asset cannot be utilized on it before due date of return of income then it need to be deposited in capital gains account bank with specified Bank.
from ty your question it is not clear what type of asset is sold

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Vedant Khanna (374 Points)
Replied 26 January 2019

Assume that my question satisfies all conditions under 54EC/EE
My doubt is just regarding the date.

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 26 January 2019

if you had not deposited in capital gains account scheme before due date if return then you will be liable to pay check tax @ 20%

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 26 January 2019

for claiming deduction under 54ec, the capital gains amount required to be deposited in the specified assets with in 6 months from the date of sale of original asset. in your case since you have deposited within 6 months, you are eligible to claim deduction under 54ec

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Vedant Khanna (374 Points)
Replied 26 January 2019

There is no requirement to deposit amount in Capital Gain account scheme on due date of ROI?

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RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 26 January 2019

for 54ec deduction, there's no requirement to deposit in cgas

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Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 26 January 2019

but AMT not invested in bonds before due date of return. so I don't think exemption can be claimed

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 27 January 2019

there's no precondition that the amount should be invested in CGAS account before filing ITR

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 27 January 2019

not in CGAS. but AMT not invested in 54EC bonds before due date of filing return. so exemption can't be claimed this is what I think

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Girish Jain (150 Points)
Replied 27 January 2019

Vedant Kanna, Condition is to ensure that gain proceeds are invested in 6 months of sale. In the case, assessed had invested within 6 months time as per section 54EC. Other logical that needs to be looked in, is that all. Supporting documents for claiming deduction and expemtion should be available. In the given case, it is not available. So you cant claim. If you want to claim, file belated return or plan your investments accordingly.

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Vedant Khanna (374 Points)
Replied 27 January 2019

But Investment is made within 6 months only right?
Is it possible that assessee had already filed ROI on/before due date without claiming exemption and now since he has made this investment he can file a revised return claiming such exemption?

Girish Jain (150 Points)
Replied 27 January 2019

Revise IT can be filed only if there is omission or wrong statement. In your case, both omission or wrong statement is not there. So, you cannot file revised IT.

1 Like