How often one can invest 50lakhs in capital gains bonds?

- Rs.50 lacs limit is for single transaction. You can invest further Rs.50 lacs from second sale.

Hello,

The limit of maximum deduction of Rs. 50 Lakhs u/s. 54EC is for a Financial Year from one or more capital gains earned during the year. So you can invest again in F.Y. 2019-20 and don't need to wait for the old bonds to mature.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Hi Prasad,

You can invest in 54ec bonds in multiple times with the limit of RS 50 lakh per FY.

There have been some changes in this section and now it has two conditions:

You can only invest 50 lakh in total in a year for as many asset you sell during the year.

With regard to an asset sold during a year you can invest in relation to capital gain of that asset only 50 lakh during the year of sale and next financial year.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hi Prasad

The limit of investment in section 54EC eligible bonds of Rs. 50 lacs is applicable for a Financial Year.

Yes, you may invest in bonds before redemption of old bonds.

Yes, the property could be divided and parts sold in different Days and thereby investment in bonds in different FYs.

Hello Sir,

You can invest in gains from this in capital gains bonds in FY 2019-20. There is no need to wait until the already invested bonds to mature before investing in these bonds again

Yes, you invest more in CG bonds before the current investment matures.

Yes, you can divide a property and then sell each piece in different FY so that you can invest most of the CG (by investing in different FY).

Exemption is available under section 54EC of the Income Tax Act to the extent of capital gain as invested in long term specified assets. However, the maximum limit is INR 50 Lakhs for a FY.