Long term capital asset designation allows specified equity and bonds as reinvestment, subject to three year clawback. The Central Board of Direct Taxes designates specified equity and bonds issued by a named public company as long term capital asset under section 54EA, limited to investments made out of net consideration from transfer of a long-term capital asset. If the assessee transfers, converts, or otherwise realizes the specified instruments within three years of allotment, the initial investment becomes chargeable to tax as Capital Gains pursuant to sub-section (2) of section 54EA.
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 capital asset designation allows specified equity and bonds as reinvestment, subject to three year clawback.
The Central Board of Direct Taxes designates specified equity and bonds issued by a named public company as long term capital asset under section 54EA, limited to investments made out of net consideration from transfer of a long-term capital asset. If the assessee transfers, converts, or otherwise realizes the specified instruments within three years of allotment, the initial investment becomes chargeable to tax as Capital Gains pursuant to sub-section (2) of section 54EA.
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