Ltcg exemption under section 54ec of income tax act, 1961. Know all about 54ec bonds to save long capital gains tax. Chapter iv sections 1459 of income tax act, 1961 deals with provisions related to computation of total income. Income tax act, 1961capital gainsdeduction under section 54eccapital gains from sale of depreciable assetsassessee claimed exemption under section 54ec on investment in specified bonds being sale consideration of depreciable assets held for more than 36 months. Section 50c can be applied after claiming exemption us 54ec. Important case laws citedrelied upon by the parties. Budget 2018 has inter alia proposed an amendment to section 54ec of the incometax act. Where the assessee could not invest the money due to nonavailability of bonds qualifying for deduction under section 54ec it was held there was a reasonable cause for not purchasing the bonds within the time specified in section 54ec. Specified bond for section 54ec of income tax act 1961 the benefit under section 54ec can be availed only if there is an income from a.
Section 54f of income tax act 1961 2017 provides for capital gain on transfer of certain capital assets not to be charged in case of investment in residential house. May 26, 2016 2012 22 itcd 47 itatahmedabad reference. Budget 2018 amendment to section 54ec cleartax content. Capital gains were charged to tax for the first time by the income tax and excess profits tax amendment act, 1947, which inserted, inter alia, section 12 b in the 1922 act. What are the provisions of section 54b of income tax act 1961. The benefit under section 54ec can be availed of only if there is an income from a capital asset, being longterm in nature. List of sections of income tax act 1961 download pdf. Capital bonds are being issued as long term specified assets within the meaning of sub section 54 ec of the income tax act, 1961.
Capital gains exemption us 54ec of income tax act, 1961. Section page i3 incometax act, 1961 arrangement of sections section chapter i page preliminary 1. Specified bond for section 54ec of income tax act 1961 taxguru. May 03, 2019 investments under systematic investment plan sips in equity linked saving scheme elss qualifies for deduction under section 80c of income tax act, 1961 with the maximum limit of rs 1,50,000 while computing taxable income under the provisions of the act. All about section 54ec of income tax act taxalertindia. Capital gain bonds issued under section 54ec by nhai or rec is one of the best ways of saving tax on longterm capital gains. This section has been amended recently by finance act, 2018 whereby lockin period of investment in. Section 54ec of income tax act 1961 provides for tax exemption on capital gains from sale of any long term asset original asset provided that capital gains are invested in specified bonds new asset within a period of 6 months after the date of transfer of original asset for the purpose of section 54ec. Those desirous of availing exemption from capital gains tax under section 54 ec may invest in these bonds. An amendment to section 54f of income tax act was introduced in budget 2014 according to which starting financial year 201415, exemption under section 54f will be available only if the net consideration from the sale of original asset is reinvested in 1 residential house property in india. As per the section 54ec of the income tax act, such capital gains are to be invested in these bonds within six months from the date of transfer, irrespective of whether those six months expire in the next financial year or not.
Section 54ec of income tax act, 1961 provides that capital gain arising from the transfer of longterm capital asset being land or building or both shall not be charged to tax in case the amount of capital gain is invested in capital gain bonds. Section 50c can be applied after claiming exemption us. Y 201920, the said long term capital asset shall be land or building or both which he has held for a period exceeding 24. May 30, 2019 download the list of sections of income tax act,1961 in pdf and excel format. The appellant assessee company was aggrieved by the order of the commissioner of income tax appeals in confirming the denial of the deduction us 54ec of the income tax act, 1961 the act. Capital gain not to be charged on investment in certain bonds. Jun 20, 2018 section 54ec of income tax act, 1961 provides that capital gain arising from the transfer of longterm capital asset being land or building or both shall not be charged to tax in case the amount of capital gain is invested in capital gain bonds. The deduction is available only for the amount contributed under the scheme. The section 54ec of the incometax act, 1961 allows a deduction in respect of long term capital gains arising from selltransfer of any long term capital asset. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Section 54h of income tax act extension of time for acquiring new asset or depositing or investing amount of capital gain section 54h. Provisions of section 54 of income tax act, 1961 section 54 of incometax act, 1961 provides for tax exemption on long term capital gains that result from sale of residential house property, provided that the residential house was sold after 3 ye. Income tax act 1961 is free app providing detail sectionwise and chapterwise information on charging statute of income tax in india. Section 54ec of the incometax act, 1961 allows a deduction in respect of longterm capital gains arising from transfer of any longterm capital asset original asset where the following conditions are satisfied.
Provisions of section 54ec are being discussed hereinbelow for the benefit of all concerneds. Apportionment of income between spouses governed by portuguese civil code. After section 54eb of the income tax act, the following section shall be inserted with effect from the 1st day of april, 2001, namely. Understanding basic provisions of section 54ec of the income tax act. This section is specifically for the investment in. Download app now for getting latest updates regularly. What are the provisions of section 54 of the incometax.
The section 54ec of the income tax act, 1961 allows a deduction in respect of long term capital gains arising from selltransfer of any long term capital asset. As per section 54ec, of the income tax act, 1961 capital gain not to be charged on investment in certain bonds. Download the list of sections of income tax act, 1961 in pdf and excel format. Act, 1961 relates to exemption of taxes on long term capital gains, if invested in these bonds, subject to limits. Capital gains bond section 54ec hrp wealth creators. Given income tax act sections list includes revised, omitted and newly added tax rules. Income tax capital gains part2 capital asset income. Income tax act 94 of 1983 income tax amendment act 30 of 1984 income tax act 121 of 1984 income tax act 96 of 1985. Know everything about 54ec bonds at karvy corporate. Subsequently the finance act of 1956 widened section 12 b to bring within capital gains any profits or gains arising from the sale. The eligible bonds under section 54ec are rec rural electrification corporation ltd, pfc power finance corporation ltd. Capital gainsdeduction under section 54ecinvestment.
Important case laws citedrelied upon by the parties cit vs. This section has been amended recently by finance act, 2018 whereby lockin period of investment in capital gain bonds has. Circumstances under which deduction us 54ec is available. Section 54 income tax act capital gains exemption chart. Section page contents division one 111 incometax act, 1961 page u arrangement of sections i3 u text of the incometax act, 1961 as amended by the finance act, 2011 1. This section allows taxpayers to save on tax on any capital gains or profits that they might accrue following the transfer of. Mar 21, 2019 section 50c can be applied after claiming exemption us 54ec of the income tax act. Deduction under section 54ec of income tax act 1961 by investment in bonds notified by government of india. The lockin period of section 54ec capital gain bonds has increased from 3 years to 5 years.
Aug 07, 2019 section 54 income tax capital gains chart. Tax deduction is available under section 54ec of the income tax act. Invest in 54ec bonds to get benefits of tax deduction. As per finance act 2018, the deduction us 54ec is restricted to only transfer of land or building or both. Nov 11, 2019 hi, the exemption under section 54b is available when any agriculture land is sold and investment is made in the purchase of agricultural landurbanrural. After march 31, you will have to pay tax or can use ltcg to invest in residential property as per section 54f, adds soni.
Section 54ec of income tax act 19612017 provides for capital gain not to be charged on investment in certain bonds. The capital gain arises from sale of such long term asset is invested in two bonds notified by the. Apr 17, 2015 capital gain bonds issued under section 54ec by nhai or rec is one of the best ways of saving tax on longterm capital gains. Insertion of new section 54ec income tax department. Section 54f of income tax act 1961 provides for tax exemption on capital gains that result from sale of any long term asset original asset other than residential house property provided that the entire net consideration is invested in 1. Section 54ec of income tax act 1961 2017 provides for capital gain not to be charged on investment in certain bonds. As per the section 54ec of the income tax act, such capital gains are to be invested in these bonds within six months from the date of transfer. Mar 12, 2012 section 54ec of income tax act, 1961 provides an option to save tax on capital gain arising from transfer of long term capital asset subject to fulfillment of certain conditions. Download this app from microsoft store for windows 10 mobile, windows phone 8. Taxpayers or assessees who acquire capital gains can avail of tax deductions under section 54ec of the income tax act 1961. Sections 54, 54f deductions available only for ltcg. Section 54d of income tax act capital gain on compulsory.
Section 54f of income tax act 19612017 provides for capital gain on transfer of certain capital assets not to be charged in case of investment in residential house. Summary of sections income tax act 1961 is available for download at the excellent download file is in the format of pdf. Text of remaining provisions of allied acts referred to in incometax act 1. Students taking ca intermediate ca ipcc exams or students preparing for taxation will find the file very useful. Notwithstanding anything contained in sections 54, 54b, 54d, 54ec and 54f, where the transfer of the original asset is by way of. Investments under systematic investment plan sips in equity linked saving scheme elss qualifies for deduction under section 80c of income tax act, 1961 with the maximum limit of rs 1,50,000 while computing taxable income under the provisions of the act. As per provisions of income tax act, 1961, any long term capital gains arising from transfer of any capital asset would be exempt from tax under section 54ec of the act if. Be it enacted by parliament in the twelfth year of the republic of india as follows. Pay long term capital gains tax or buy sec 54ec nhairec bonds. Hi, the exemption under section 54b is available when any agriculture land is sold and investment is made in the purchase of agricultural landurbanrural. Section 54ec exemption available on investment in certain. Y 201920, the said long term capital asset shall be land or building or both which he has held for a period exceeding 24 months. Those desirous of availing exemption from capital gains tax under section 54 ec. Section 54gb, incometax act, 1961 2015 24capital gain on transfer of residential property not to be charged in certain cases 54gb.
Nov 26, 2019 download app now for getting latest updates regularly. Section 54ec exemption of ltca on purchase of specified bonds. Section 54 to 54 h chart income tax last updated at aug. After section 54eb of the incometax act, the following section shall be inserted with effect from the 1st day of april, 2001, namely. What are the provisions of section 54b of income tax act.
Tax benefit under section 54ec on long term capital gain. The assessee was eligible for the exemption us 54ec of the actito v saraswati ramanathan 2008 300 itr at 410 del. Income tax act rules list 2019 has been provided for tax payers which includes revised and newly added tax rules. Section 54ec of income tax act 1961 provides for tax exemption on capital gains from sale of any long term asset original asset provided that capital gains are invested in specified bonds new asset within a period of 6 months after the date of transfer of original asset.
App features complete income tax act 1961 in digital format. Longterm capital gains are the profit that a person makes when he sale any capital asset w. Planning to invest ltcg in sec 54ec bonds to save tax. Though, the assessee has raised six grounds, however, the dispute in the present appeal is confined to disallowance of assessees claim of exemption under section 54ec of the incometax act, 1961 for short the act for an amount of rs. Income tax specified bond for section 54ec of income tax act 1961 the benefit under section 54ec can be availed only if there is an income from a capital asset, being longterm in nature. Download the list of sections of income tax act,1961 in pdf and excel format. Capital gain tax on sale of short term and long term property.
Section 54ec of the income tax act, 1961 lays down the provision that capital gains are exempt from tax, if the longterm capital gains are. Provisions of section 54ec are being discussed herein below for the benefit of all concerned. Section 54ec of income tax act, 1961 provides an option to save tax on capital gain arising from transfer of long term capital asset subject to fulfillment of certain conditions. The maximum limit for investing in 54ec bonds is rs. This section currently provides for an exemption of. Pay long term capital gains tax or buy sec 54ec nhairec.
Section 50c can be applied after claiming exemption us 54ec of the income tax act. The entire capital gain realized is invested within 6 months of the date of transfer in eligible bonds. The incometax act, 1961 is the charging statute of income tax in india. Latest income tax act sections list has been provided for finance people. Longterm capital gains are the profit that a person makes when he sells any capital asset wef a. Mar 18, 20 exemption allowed where investment was made after 6 months due to nonavailability of bonds.
Under section 54ec of the income tax act, 1961, long term capital gains arising out of the saletransfer of any capital asset owned for more than 3 years can be exempt from income tax if the said capital gains, subject to a maximum limit of rs 50 lakhs, is invested within 6 months from the date of the said saletransfer, in capitalgainstax. Section 54ec of income tax act 1961 what is the meaning of capital gain on transfer of certain listed securities or unit not to be charged in certain cases. Ao held that exemption under section 54ec was applicable in transfer of. Income tax act 1961 section 160 representative assessee. Deduction under section 54ec of income tax act 1961. Residential house long term capital asset 3 years or more new residential house only 1 residential house now allowed and that too in india due to amendment.