What is exemption under section 54EC?
Exemption Under Section 54EC Section 54EC states that if the profit made on sale of a long-term capital asset – whether an immovable property or shares and stocks – is invested by the taxpayer in ‘long-term specified assets’ within 6 months of the sale, then the capital gains are exempt from taxation.
How much should I invest in 54EC?
Investment amount: Minimum investment in 54EC bonds is 1 bond amounting to Rs. 10,000 and the maximum investment in 54EC bonds is 500 bonds amounting to Rs 50 lakhs in a financial year.
How do I invest in Section 54EC bonds?
How do you buy bonds under section 54ec? You can apply through your broker if you are interested in investing in 54EC bonds. If you want to purchase, you must do it within 6 months of transferring the asset. The minimum amount to invest is Rs 10,000 and maximum Rs 50 lakhs.
How is exemption calculated under section 54EC?
1. The deduction u/s 54EC is restricted to only transfer of Land or building or both by Finance Act 2018….Section 54EC Deduction on Capital Gain Under Income Tax Act.
| Sale Price of Asset | 2,00,00,000 |
|---|---|
| Less: Indexed Cost of Acquisition (5,00,000 X 280/100) | 14,00,000 |
| Long-term Capital Gains | 1,86,00,000 |
| Less: Deduction u/s 54EC | 50,00,000 |
| Net Long term Capital Gains | 1,36,00,000 |
Who can claim 54EC exemption?
Any assessee can claim exemption u/s 54EC. Therefore, an Individual, HUF, Company, LLP, Firm, etc can claim this exemption. The asset sold is a Long Term Capital Asset (LTCA) being Land or Building or Both. The asset is long Term if it has been held for more than 24 months.
Can I buy 54EC bonds online?
The online facility to invest in 54EC bonds is provided by Karvy for 3 bond issuers. 1. Click the “Fill a New Form online” button for the bond issuer you prefer. Fill the application form online and submit.
How do I redeem REC bonds?
Bonds will be automatically redeemed by REC on maturity, without the surrender of Bond Certificate(s) and the proceeds would be paid by cheque or NECS/ECS. Demat account is not mandatory, if you don’t have demat a/c, then you will receive physical bond certificate like your Fixed Deposit.
Can section 54 and 54EC simultaneously?
From the above case, it is clear that a tax payer can avail of the exemption under Section 54 and Section 54EC together, in case the capital gains have arisen from the sale of a residential house, by partly investing the capital gains in a residential house and partly (within the overall limit of Rs 50 lakhs) in …
What is Section 54 and 54F?
Section 54 & section 54F of Income tax Act –deals with exemption from tax on LTCG only if used for purchase or construction of a house with in specified limits.
Which banks provide 54EC bonds?
Sec 54 EC – Capital Gains Bonds | HDFC Bank.
What is the new section 54EC?
Insertion of new section 54EC. 27. After section 54EB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2001, namely:— ‘54EC. Capital gain not to be charged on investment in certain bonds.
What are the tax exemptions available under Section 54?
However, there are certain exemptions available under Section 54, Section 54B, Section 54EC and Section 54F of the Income Tax Act 1961. As of FY 2018-19, exemption under Section 54EC applies only to transfer of long term capital assets specifically land, building or both.
When did the Public Service Act 1994 come into effect?
Acts / Labour / PUBLIC SERVICE ACT, 1994 PUBLIC SERVICE ACT, 1994 [PROCLAMATION NO. 103 OF 1994] [ASSENTED TO 1 JUNE, 1994] [DATE OF COMMENCEMENT: 3 JUNE, 1994] as amended by Public Service Labour Relations Act, 1994 [with effect from 11 June, 1994] Constitution of the Republic of South Africa, No. 200 of 1993
What is section 54EC deduction on capital gain under income tax?
Section 54EC Deduction on Capital Gain Under Income Tax Act. If the cost of the “long-term specified asset” is not less than the capital gain arising from transfer of asset, the whole of such capital gain shall not be charged u/s 45.