54 EC Bonds?
Capital Gain be saved Under Sec 54EC or Sec 54F, if the
land or property sold is non agriculture. We deal in such
bonds which qualify for Sec 54EC Bonds.
- Tax can be saved under Section 54 EC by investing in
- Tax can be saved under Section 54 F by investment in New
To claim Section 54 EC following conditions is to be
- Long Term Capital Asset Long term assets means any
capital asset held by assessed for more than 3 Years.
- If assessed has sold the Long term capital asset during
the previous year and made a long term capital gain then
he can invest money of capital gain in Capital gain bonds
and can save tax on long term capital gain.
- Assessed here means all type of assesses, like individual, firm
- Amount to be invested in bonds is only capital gain not
net consideration received on sale of long term capital
- Amount exempted under this section will be amount of
capital gain or amount invested in capital gain bond which
ever is lower maximum up to 50Lakh(see note below)
- These Bonds Maturity Period is Three years
- Capital gain bonds eligible under this section are now
can be issued only by REC or NABARD
- Bonds can not be pledged ,sold transfer before
completion of three year from purchase of bonds ,and in
case its transferred then amount capital gain exempted on
investment in these bonds will be made taxable in that
previous year as Long term capital gain .
- Amount of capital gain should be invested in Capital
gain bond within 6 Month from date of transfer/sale of
capital asset .
One more good news for you that 50 lakh Limit is for each
financial year .As your six month limit is fall in two
different Financial years so you can save 50 lakh in fy
2008-09 and 50 lakh in 2009-10.so one can save upto maximum of
one crore of capital gain u/s 54EC.