Exemption of Long-Term Capital Gains on Investment in Specified Bonds - (New) Section 85 / (Old) Section 54EC

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....tion Lower of: • Long-term Capital Gain arising from transfer of land/building; or • Amount invested in long-term specified bonds. Subject to the overall limit prescribed under Section 85(2) of Rs.50 lakh. Withdrawal of Exemption on Premature Transfer of Bonds • If the new asset is • transferred or • converted (otherwise than by transfer) into money • Loan or advance taken on the security of the new asset • within five years of its acquisition, the capital gains not charged under section 67 as per sub-section (1), shall be deemed to be income chargeable as long-term capital gains in the tax year of its transfer or conversion. Res....

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....nds redeemable after 5 years issued by, • a) National Highway Authority of India (NHAI); or • b) Rural Electrification Corporation Ltd (RECL); or • c) Power Finance Corporation Ltd. (PFC) [ Notification No. 47/2017 Dated 8th June, 2017 ]; or • d) Indian railway Finance Corporation Ltd. (IRFC) [ Notification No. 79/2017 Dated 8th August, 2017 ]; or • e) Indian Renewable Energy Development Agency (IREDA) [ Notification No. 73/2025 dated 9th July, 2025 ] • Overall Aggregate Investment Limit • The investment made on or after the 1st day of April, 2007 in the long-term specified asset by an assessee during any financial year d....

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....in a period of Five years from the date of its acquisition, • the amount of capital gains arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such long-term specified asset as provided in clause (a) or clause (b) of section 54EC(1) shall be deemed to be the income chargeable under the head "Capital gains" relating to long-term capital asset of the previous year in which the long-term specified asset is transferred or converted (otherwise than by transfer) into money. Time limit of Purchase Purchase: Within 6 months from the date of transfer of original asset. Capital Gain Deposit Scheme Not Available Quantum of Deduction Lower of: • Lo....

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....oice of investing in one of the two organizations is with the respondent and the appellant revenue contrary to the statue cannot force the respondent to invest only in the bonds of one in preference to the other. The choice of which bonds to purchase is entirely with the respondent and in case the bonds of respondent's choice are not available as is proved in the present case, the time to invest in the bonds get automatically extended till the bonds are available in the market and the assessee can purchase the same. [ Commissioner of Income Tax, Central III Versus M/s. Cello Plast, 2012 (8) TMI 527 - Bombay High Court ] • The appellant is entitled to an exemption of Rs. 1 crore under Section 54EC as the six-month inves....