Exemptions From Capital Gains For Investments In Notified Bonds

ApplicabllityIndividual / HUF
Asset TransferredAny Long term Capital Asset
Nature of the AssetLong Term Capital Asset
New Asset to be acquiredBonds redeemable after 3 years issued on or after 01.04.2007 by National Highway Authorities of India (NHAI) or Rural Electrification Corporation Limited (RECL).However, deductions against these investments, once availed u/s54EC cannot be availed u/s 80C.
Amount to be Invested In New AssetLong term Capital Gain on Transfer.Maximum amount that can be invested by the Assessee during any Financial year is Rs.50 lakhs
Amount of ExemptionLeast of the followings:                                            (a) Amount invested in bonds; or,                        (b)Capital Gains
Time Limit for InvestmentWithin Six months from the date of transfer
Holding Period of New AssetThree years from the date of acquisition
Sale of New Asset within holding periodLong term capital gains already exempted u/s 54EC shall be charged as LTCG of the assessee in the year of sale or creation of charge on the new asset

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