Ronnie fernandese (RETIRED) (111 Points)
02 July 2012I had invested in REC Bonds due to capital gains in 2011. But, due to some problem, the deal is likely to get revoked. Can I get early reffund of the bonds? I will have to get that money to pay back for cancelled deal. What procedure should I adopt? Please advise.
CA Harsh Lunia
(Audit)
(81 Points)
Replied 27 September 2012
Yes, the amount invested in 54EC bonds can be withdrawn before expiry of 3 years. But in that case, the long term capital gains that were exempt earlier due to investment in such bonds, will now become taxable in the year of withdrawal.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
CAclubindia
