Investment u/s 54EC

[MANISH KHANNA]

Suppose capital gains of Rs 1.50 crores  arises on 01 Jan 2012. If  an individual invests Rs 50 lacs by 31Mrach 2012 and 50 lacs on 2 April 2102, will the entire 1.00 crores be eligible u/s54 EC 

AI Summary

Eligibility of Rs 1.00 Crore Capital Gains Tax Deduction Confirmed Under Section 54EC Despite Split-Year Investments An individual inquired about the eligibility for a tax deduction under Section 54EC of the Income Tax Act for capital gains of Rs 1.50 crores, with investments of Rs 50 lakhs each made before and after the end of the financial year. A respondent confirmed that the entire Rs 1.00 crore is eligible for deduction, citing compliance with Section 54EC requirements. The discussion referenced a legal case to support this interpretation. Another participant questioned the fairness of this rule, suggesting it might create inequality for taxpayers selling assets later in the financial year.