Section 54EC-Capital gain not to be charged on investment in certain bonds
Section 54EC provides that the capital gains arising from the transfer of a long term capital assets will be exempt, if the whole or part of the capital gain, is invested in the long term specified assets at any time within a period of six months after the date of transfer. Further, proviso to this section provides exemption shall be available only when investment made in long term specified asset by an assessee during any financial year does not exceed Rs. 50,00,000/-.
a) As the financial year may differ from assessee to assessee, it is suggested that the term “financial year” be substituted with the term “previous year”.
b) Considering the inflationary conditions in the economy, it is further suggested that the said limit of Rs.50 Lakhs may be raised to Rs. 1 crore.
Source- Pre-Budget Memorandum 2014 on direct taxes by Institute of Chartered Accountants of India