CA Devesh Thakur (CA ) (303 Points)
25 September 2016Dear CAclubIndia Member/experts,
I have just sold the ancestral property of my father. For saving purpose if i invest 50,00,000/- in NHAI/REC bond u/s 54EC will the Maturity Amount be Taxable?
Though interest earned on these will be taxed under income from other source. Will the Principal amount received after 3 years be taxed again? or can i invest the same in any manner i want to?
Thanks in advance.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 25 September 2016
Principal amount is not taxable on redemption. Interest paid yearly, and tax accordingly.
The principal amount you can invest in any manner you like.
CAclubindia
