Specified securities investment preserves capital gain treatment when proceeds are invested in designated debentures and bonds, subject to a seven year reconversion rule. The notification specifies that Noida Toll Bridge Company Limited may issue Fully Convertible Debentures and Deep Discount Bonds within one year for purposes of section 54EB, and that investment must be made from net consideration of a long term capital asset; if the allotted specified securities are transferred or converted into money within seven years of allotment, the initial investment shall be chargeable to tax as capital gain under the section.
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Provisions expressly mentioned in the judgment/order text.
Specified securities investment preserves capital gain treatment when proceeds are invested in designated debentures and bonds, subject to a seven year reconversion rule.
The notification specifies that Noida Toll Bridge Company Limited may issue Fully Convertible Debentures and Deep Discount Bonds within one year for purposes of section 54EB, and that investment must be made from net consideration of a long term capital asset; if the allotted specified securities are transferred or converted into money within seven years of allotment, the initial investment shall be chargeable to tax as capital gain under the section.
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