If an individual invested in REC bonds to get the exemption under section 54EC on LTCG. Is it compulsory to buy property after 3 years from the maturity amount received after 3 years from the bond?
3 Replies
Kiran. S
(CTO)
(745 Points)
Replied 18 July 2017
1) Max limit of NHAI/REC bonds is 50 lakhs in a Fin year.
2) Within six months of selling an asset one should buy these bonds. In these six months the gains part should be kept in CGA account of any Nationalised bank.
3) Int from these bonds are taxable.
4) Investing in these bonds itself means no need to buy any other asset.
5) Only individual or HUF can avail this benefit
Dhruv Shah
(Article Student)
(357 Points)
Replied 18 July 2017
In my opinion, it is not compulsory at all.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177741 Points)
Replied 18 July 2017
Yes, the redemption proceeds of 54EC bonds is completely taxfree (except interest earned annually), and hence no need for any secondary investment for exemption u/s. 54/54F
Recent Topics
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
Related Threads
CAclubindia
