Budget proposed investment
in any bond redeemable (Notified by central government) after three year shall also
eligible for deduction section 54EC.
Earlier, only the investments
in bond issued by the National Highways Authority of India or by the Rural
Electrification Corporation Limited are eligible for exemption under this
section.
Section 54EC provides that
capital gain to the extent of Rs. 50 lakhs arising from the transfer of a long
term capital asset shall be exempt if the assesse invests the whole or any part
of capital gains in certain specified bonds, within specified time.
It is proposed to amend
section 54EC so as to provide that investment in any bond redeemable after
three years which has been notified by the Central Government in this behalf
shall also be eligible for exemption.
The amendment will be
applicable for previous year 2017-18 and subsequent years.
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