• Rs 80 lakhs capital gains in the month of December

If my Cap Gains from sale of flat is Rs 80 Lakhs,and If I invest Rs 50 Lakhs in Cap Gains Bonds in Dec, can I again invest balance Rs 30 lakhs in April of the following year to get tax benefit on total Rs 80 Lakhs
Asked 1 year ago in Capital Gains Tax from Pune, Maharashtra
Yes you can invest in 6 month
Vidya Jain
CA, Kolkata
555 Answers
12 Consultations

4.8 on 5.0

No only 50 is allowed
For 1 trf 50 lakhs is allowed
Mahendra Chaudhary
CA, Pune
22 Answers

4.3 on 5.0

yes, you can
time frame is 6 months for investment from the date of transfer. if in your case this six months time trame is falling in two financial year, then you can take the benefit  of investing upto 50 Lakhs in both the financial year.
Vishakha Agarwal
CA, Bangalore
438 Answers
57 Consultations

5.0 on 5.0

Dear Sir,

It is mandatory to deposit any amount received as capital gain before the end of the year in which you have received the same amount i.e. March. However if you propose to invest it in the future you can park the same amount in capital gain account opened with any nationalised or private bank for the purpose of income tax which can only be used for the purpose of purchase of property or this bonds in the future.
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

The maximum exemption allowed U/s 54EC is 50 Lakhs what ever be the capital gains.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Hello Sir,

NO. You cannot claim the balance in April. Since the section is recently modified and says that the maximum amount of deduction you can claim is Rs.50 lacs which has to be invested in a span of 6 months.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

No. The maximum deduction during the six months can be UpTo 50lacs. The section has been amended by the finance act 2014 to restrict the amount UpTo 50lacs.

Earlier, it was allowed to claim more than 50lacs if 6 months falls in two different financial year.

Please feel free to call/ revert in case of any doubts

Thanks and Regards
Abhishek Dugar
Abhishek Dugar
CA, Mumbai
2944 Answers
125 Consultations

5.0 on 5.0


2nd Proviso inserted in Section 54EC by Finance (No.2) Act, 2014 wef 01-Apr-2015, has limited total deduction u/s 54EC (Investment in Capital Gain Bonds) to Rs. 50 Lakhs. So, you can invest a maximum of Rs. 50 Lakhs in Cap. Gain Bonds within 6 months from the date of sale.

However, you can still claim deduction for remaining 30 Lakhs Capital Gain u/s 54 or 54F as the case may be
Pradeep Bhat
CA, Bengaluru
450 Answers
28 Consultations

5.0 on 5.0

You can get exemption upto Rs. 50 Lakhs only under the amended provisions of Section 54EC. As per the provision of sub-section (1) of section 54EC by the Finance (No. 2) Act, 2014, (w.e.f. 1-4-2015) “ provided further that the investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees” 

You may consider investments u/s 54ED and 54EE to get the benefit of exemption of balance of Rs. 30 Lakhs.

You may also decide upon the investment by arriving at your tax liability after considering your income, if any, from other heads of income and the slabs applicable to you to get optimum returns.
B Vijaya Kumar
CA, Hyderabad
845 Answers
48 Consultations

5.0 on 5.0

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