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 bonds
- Tax can be saved under Section 54 F by investment in New residential house
To claim Section 54 EC following conditions is to be satisfied
- Long Term Capital Asset Long term assets means any capital asset held by assessee for more than 3 Years.
- If assesee 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.
- Assessee here means all type of assessees,like individual,firm company etc.
- Amount to be invested in bonds is only capital gain not net consideration received on sale of long term capital asset
- 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 .
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