I have made investments in REC/NHAI bonds but the date of issue of bonds by REC/NHAI is beyond six months. Am I eligible?
The eligibility
for the benefits depends upon the date of payment by you towards investments in
REC/NHAI bonds and date of receipt of such payments by REC/NHAI. If they have
received your payments within a period of six months, you are eligible for the
benefits under section 54EC.
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I wanted to invest in REC/NHAI bonds but they are not available in market at this time and hence I am not able to invest my funds. What to do?
If bonds of assessee’s choice are not available throughout period of six months as provided under section 54EC, time to invest in bonds would get automatically extended till bonds are available in market; and assessee can purchase same and claim ...
How much can you invest in REC/NHAI Bonds?
You can invest a minimum of Rs. 10,000 and a maximum of Rs. 50 lakh. The face value is Rs. 10,000 per bond, so you can buy up to 500 bonds.
Is it possible to invest more than Rs.50 lakhs in the REC/NHAI bonds?
No. After amendment in the Finance Act (No.2) 2014, it is not possible to invest more than Rs.50 lakhs for benefits under section 54EC of the Act. But you may consider investment u/s 54F or 54.
Can I claim exemption under any other section if the I invest the capital gains from sale of property in any other asset?
Yes. If within six months the assessee invests, the capital gains in long term specified bonds (REC & NHAI bonds) issued by the government for a minimum of five years, then these capital gains will be exempt from tax u/s 54EC. However, the capital ...
I have purchased a flat from the builder through an agreement to purchase. The payments are made as per the stage of construction. I haven't received possession of the flat within two years and I haven't registered a sale deed for purchase of new flat/house from builder. Am I eligible for exemption?
Yes. Agreement to purchase coupled with substantial payments is enough for claim of exemption. The date of possession is more important than the date of sale deed or purchase deed. However, if possession is beyond your control, you can claim so ...