<h1>Income Tax Act Section 54EC Amendment: Bonds Now Require 5-Year Redemption for Capital Gains Tax Exemption.</h1> The provisions of Section 54EC of the Income Tax Act are being amended to focus solely on capital gains from long-term capital assets, specifically land or buildings. Previously, investments in specified bonds redeemable after three years were tax-exempt. The amendment proposes that from April 1, 2018, such bonds must be redeemable after five years to qualify for tax exemption. This change aims to extend the investment period for eligible bonds issued by the National Highways Authority of India, the Rural Electrification Corporation Limited, or other government-notified bonds. The amendment will be effective from April 1, 2019, applicable to the 2019-20 assessment year onwards.