Investment in specified securities exempts long-term capital gains if reinvested within six months; disposal within three years triggers charge. Section 54EA exempts long-term capital gains where the assessee reinvests whole or part of the net consideration in specified securities within six ... Summary
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Investment in specified securities exempts long-term capital gains if reinvested within six months; disposal within three years triggers charge.
Section 54EA exempts long-term capital gains where the assessee reinvests whole or part of the net consideration in specified securities within six months; full or proportionate exemption depends on whether the cost of such securities equals or is less than the net consideration. If the specified securities are transferred or otherwise converted into money within three years, the previously exempted amount is chargeable as long-term capital gain in the year of conversion, and taking a loan on those securities is treated as conversion.
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