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Section - 54 EC - Expanding the scope of long term bonds

 

Section 54EC provides that capital gain to the extent of Rs. 50 lakhs arising from the transfer of a long-term capital asset shall be exempt if the assessee invests the whole or any part of capital gains in certain specified bonds, within the specified time. Currently, investment in bond issued by the National Highways Authority of India or by the Rural Electrification Corporation Limited is eligible for exemption under this section.

 

It is proposed that the  scope of this section may be expanded to provide that investment in any bond redeemable after three years which has been notified by the Central Government in this behalf shall also be eligible for exemption :

 

The amendment will be effective from 1st April 2018.


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