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Please advice me on section 54ec of the income tax act,1961.

CA Sunil Kumar Parjapati (ACA Senior Manager- Accounts & Finance) (224 Points)

20 December 2011

My question is this , whether we can claim exemption under section 54EC more than 50 lacs.

suppose i have got long term capital gain of Rs. 80 lacs in 1st Jan 2011 and that i wan to invest in specified assets within 6 months from the date of transfer.

Now can i invest 50 lacs till 31st march 2011 and rest 30 lacs till 30th june 2011.

As my interpretation of this section says that "the amount of investment shall not exceed Rs. 50 lacs in any financial yea. Hence i can invest maximum rs 1crore within 6 months specified in the law !!!

Please clarify ( along with specific case or anything reliable )

Thanks for concern

Sunil Kumar

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8 Replies

Z ( ) (2965 Points)
Replied 20 December 2011

Yes

/experts/sec-54ec-ltcg-exemption-330500.asp

https://www.mumbaipropertyexchange.com/News/NewsDetail.aspx?id=1512

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Jayamanoj (Senior Audit Executive) (40 Points)
Replied 23 December 2011

Yes, Sunil there is no doubt you can invest 50L within 31st March and another 50L anytime between April to June in bonds mentioned in 54EC

1 Like

amit jain (Chartered Accountant) (532 Points)
Replied 23 December 2011

yes you can do it

CA Sunil Kumar Parjapati (ACA Senior Manager- Accounts & Finance) (224 Points)
Replied 14 January 2012

Thank you for your time and response !

CA Gaurav Choradia (Relationship Manager ) (418 Points)
Replied 16 January 2012

Yes dear u are absolutely right....

very well interpreted

"the limit is for a financial year"

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Sony (Articled assisstant ) (25 Points)
Replied 12 March 2012

an assessee invests money received from sale of residential site Rs.71lacs earns LTCG Rs.64lacs, he invests such gain partly in bonds in a nationalised bank Rs.41Lacs for less dan 1 yr and partly invests in purchase of new site Rs.25 Lacs within 3 months.

old site was purchased in 2004-05 and sold in 2009-10 (FY)

My question is,

how much exemption can b claimed ? after maturity of such bonds, construction on new site takes place, what r d criterias to b followed here ? does gain invested in bonds has limit tat for prescribed period it should nt b used or should b utilised wit in so n so period ? how to deal with dis ?

kindly help.

Suraj Daivajna (Co-Founder) (21 Points)
Replied 08 October 2012

Hello !! Are there covered case laws vindicating the above stand ?? I would be grateful for any help on the above as the case is at appeal level now.

C.Balaji (Learner) (1867 Points)
Replied 08 October 2012

I will look out for case laws. but u pls go through the Finance Minister Budget speech financial year 2007. It has been referred like "Per investor per year" and not simply "per investor".. The limit " in any financial Year"...