Section 54EC exemption withdrawal: sale or redemption of specified bonds within the lock in period renders earlier capital gains taxable. Exemption under section 54EC is withdrawn if specified bonds are sold, transferred, redeemed or converted into cash within the applicable lock in period; in such case the capital gains previously exempted on the original long term asset become taxable as long term capital gain in the year of the bond transfer or conversion, thereby forfeiting the earlier exemption.