Will amount received after redemption of Bonds( Redeemed after 3 years) issued U/s.54EC of The IT Act,1961, be taxable? and under which head?
Thanks
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 19 May 2011
It is not Taxable even after 3 years bcoz since the intention behind invetment is to save tax & therefore since whn inveted it is nt taxable thn whn u rec it aftre redempiton its nt taxable , its lik u r recving ur investment back whic is capital in nature....so ther is no q of any income as per definition of IT Act u/s2(24)...therfore not taxable...
Only thing taxable is THE INTRST RECVD on the said bonds under SEC 54EC.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 19 May 2011
| Originally posted by : TusharSSampatM.Com CA,CS-FINAL | ||
 |
It is not Taxable even after 3 years bcoz since the intention behind invetment is to save tax & therefore since whn inveted it is nt taxable thn whn u rec it aftre redempiton its nt taxable , its lik u r recving ur investment back whic is capital in nature....so ther is no q of any income as per definition of IT Act u/s2(24)...therfore not taxable... Only thing taxable is THE INTRST RECVD on the said bonds under SEC 54EC. |
 |
agree...
NITIN MEHTA
(STUDENT)
(56 Points)
Replied 20 May 2011
i have one more query related this section?
what amount of exemption will be allowed if assessee invested amount in two diffrent financial years,.... For example he invested Rs. 50 lakhs on 25-03-2011 and he invested Rs 25 lakhs on 12-04-2011??????????
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 May 2011
Irrespectiv of dates ..if itsinveted within 6 months frm date of tranfer thn asessee wll get exemption
in ur case i n my opinion ull get 50lakhs...evn if thr is change in yr
CA. Anubhav Jaggi
(CA)
(104 Points)
Replied 20 May 2011
The section 54EC has a provisio as under:
Provided that the investment made on or after the 1st day of April, 2007 in the long-term specified asset by an assessee during any financial year does not exceed fifty lakh rupees.
It means that limit of Rs. 50 Lacs is to be seen for any one financial year.
If asset is sold on 15 March 2011, and Rs. 50 Lacs is invested on 25 Mar 2011 and another 50 Lacs on 15 April 2011, exemption of Rs.1 Crore can be claimed, as both the conditions are satisfied:
1. Exemtion does not exceed Rs.50 Lacs in any one financial year, and
2. Time limit of 6 months from the date of transfer is also not exceeded.
CA NITUL MEHTA
(KPMG-Senior Consultant-International Tax )
(236 Points)
Replied 20 May 2011
i do not agree with Mr Sampat , what ever may be the case the maximum amount that one can invest can be rs1 crore that is 50lscs in end of one financial year and additional 50 lacs in next fin year before filing retun this can be the max amount be invested
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 May 2011
YA AGREE THATASSESSEE WILL BE ELIGIBLE ONLY FR 50LAKS FOR EXEMPTION UNDER 54EC
.
CA Nitu Agarwal
(CA, M.Com)
(266 Points)
Replied 21 May 2011
Sec 54EC says that an Assessee gets exemption if he investes in certain specified assets(REC bonds, NHAI Bonds) within 6 months from the date of transfer of long term capital asset. Here no monetary limit is specified for the maximum exemption. However it further provides that an assessee can invest maximum upto Rs. 50 Lacs during a financial year. So agreeing with the example given by Anurag, he can get benefit upto maximum Rs. 1 Crore.
CA Nitu Agarwal
(CA, M.Com)
(266 Points)
Replied 21 May 2011
oops... sorry... it's not Anurag..... it's Anubhav....
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 21 May 2011
| Originally posted by : Nitu Agarwal | ||
|
Sec 54EC says that an Assessee gets exemption if he investes in certain specified assets(REC bonds, NHAI Bonds) within 6 months from the date of transfer of long term capital asset. Here no monetary limit is specified for the maximum exemption. However it further provides that an assessee can invest maximum upto50 Lacs during a financial year. So agreeing with the example given by Anurag, he can get benefit upto maximum1 Crore. |
|
yes agree u/s 54 ec an assessee can claim max 1 crore exemption but two things shod b satisfied
1... this investment shud be within 6 months of trf
2.. and in a one fy max 50 crore..
e.g. trf takes place on 1 jan2011 then u hv invest 50 cr.up to 31 march and next 50 lakh from 1 st april 2011 to 30 june 2011 in this case u cn avail 1 cr exemption...
most imp thing is tht make trf as much possible to nearest of 31 st march..good tax planning..
CA-AK
(CA)
(600 Points)
Replied 21 May 2011
The main aim for investment is to save tax, hence if redeemed after 3 yrs will not be taxable.
But interest accruing every year will be taxable
Vivek Mehta (CA, DISA,CS, MBA)
(I am in Practice and also giving understanding and guidance to the Students of CA Final and IPCC for various subjects esp for Direct Tax.)
(1629 Points)
Replied 22 May 2011
| Originally posted by : TusharSSampatM.Com CA,CS-FINAL | ||
|
It is not Taxable even after 3 years bcoz since the intention behind invetment is to save tax & therefore since whn inveted it is nt taxable thn whn u rec it aftre redempiton its nt taxable , its lik u r recving ur investment back whic is capital in nature....so ther is no q of any income as per definition of IT Act u/s2(24)...therfore not taxable... Only thing taxable is THE INTRST RECVD on the said bonds under SEC 54EC. |
|
Vivek Mehta (CA, DISA,CS, MBA)
(I am in Practice and also giving understanding and guidance to the Students of CA Final and IPCC for various subjects esp for Direct Tax.)
(1629 Points)
Replied 22 May 2011
| Originally posted by : NITIN MEHTA | ||
|
i have one more query related this section? what amount of exemption will be allowed if assessee invested amount in two diffrent financial years,.... For example he invested Rs. 50 lakhs on 25-03-2011 and he invested Rs 25 lakhs on 12-04-2011?????????? |
|
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
