Section - 54 EC - Expanding the scope of long
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
The amendment will be effective
from 1st April 2018.