Capital gain Exemption through Investment in the Certain Bonds in Clause 85 of Income Tax Bill, 2025 Vs. Section 54EC of Income Tax Act, 1961

Capital gains exemption for reinvestment in specified bonds preserves non taxability subject to retention and anti abuse rules.

Clause 85 provides that capital gains from transfer of long term assets are not charged if the assessee reinvests whole or part of such gains in government notified bonds within six months, subject to a per year investment ceiling and a specified retention period; transfers, conversions, or loans against the new asset within the lock in are treated as taxable events and investments claiming this exemption cannot simultaneously claim alternative deductions.