Long-term specified securities under Section 54EA: reinvestment qualifies for capital gains relief, subject to a three-year holding rule. The Central Board of Direct Taxes specifies certain equity and debentures as long-term specified securities under Section 54EA, authorising their issue within a one-year window and identifying them as qualifying instruments for reinvestment of net consideration from transfer of a long-term capital asset. If an assessee transfers or converts the allotted specified securities into money within three years of allotment, the initial investment shall be chargeable to tax under the head Capital Gains as per the section.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Long-term specified securities under Section 54EA: reinvestment qualifies for capital gains relief, subject to a three-year holding rule.
The Central Board of Direct Taxes specifies certain equity and debentures as long-term specified securities under Section 54EA, authorising their issue within a one-year window and identifying them as qualifying instruments for reinvestment of net consideration from transfer of a long-term capital asset. If an assessee transfers or converts the allotted specified securities into money within three years of allotment, the initial investment shall be chargeable to tax under the head Capital Gains as per the section.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
