section 54EC

Income Tax benefits of buying property jointly

Income Tax - Buying a house is a dream for millions of people in India. The government has provided various tax benefits to individuals to encourage them to buy a house property under the ‘housing for all’ initiative. One of the important things to note is that if the property is held jointly, individuals can receive additional tax [&helli...

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Section 54EC Deduction on Capital Gain Under Income Tax Act

Income Tax - Where the capital gain arises from transfer of long-term capital asset being land or building or both, and the assessee has, at any time within a period of six months after the date of such transfer invested the whole or any part of capital gains, in the 'long-term specified assets', then the capital gain shall be dealt with in accordance...

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Tax on Sale of Under Construction Property, Indexation & Benefit U/s. 54 / 54EC

Income Tax - Whether the Right to own the Property is a Capital Asset? What is a capital asset is defined in section 2(14) of the I.T. Act, 1961. Under that provision, a capital asset means property of any kind held by an assessee, whether or not connected with his business or profession. The other sub-clauses which deal with what property is not incl...

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Tax benefit under section 54EC on long term capital gain

Income Tax - The benefit under section 54EC can be availed of only if there is an income from a capital asset, being  long-term in nature. Long-term capital gains are the profit that a person makes when he sells any capital asset (wef A.Y 2019-20, the said long term capital asset shall be land or building or both) which he has held for a period excee...

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Capital Gain on Real Estate Transactions

Income Tax - Introduction- The topic of taxation of capital gains on real estate transaction under the income tax act is live and ever interesting topic from point of view of all concerned with such taxation. This is one set of provisions in the Act which has raised maximum number of issues of interpretation. In the recent years several amendments ...

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Raise Section 54EC Capital gains exemption limit to Rs. 1 Crore: ICAI

Income Tax - In furtherance of the existing proviso to section 54EC, a new proviso has been inserted to clarify 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,...

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ICAI suggests Certification of deductions claimed U/s. 54, 54F, 54EC etc

Income Tax - At present deductions u/s 54, 54F, 54EC etc. are not subject to any audit or certification. The possibility that the assessee claims inaccurate amount of deduction under such provisions cannot be ruled out....

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Reduction in Coupon Rate on 54EC Bonds from 6% P.A. to 5.25% P.A.

Income Tax - Application Money to be credited in NHAI’s Collection Accounts on or after 1st December 2016 will be 5.2 5% P.A. till maturity of bonds...

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Section 54EC deduction for Amount not invested in REC Bonds within prescribed time due to Delay in receipt of sale consideration amount

Pr. CIT Vs Shri Mahipinder Singh Sandhu (Punjab and Haryana HC) - Where assessee had deposited sale consideration amount in the Escrow Account as a security in respect of future liabilities of the company/ transferor, the year of taxability, irrespective of the delay in making investment in REC Bonds on account of uncertainty involved for receiving the amount, the...

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Exemption u/s 54EC allowable to legal owner of property as per registered sale deed

Shri Raghuram P Nambyar Vs ACIT (ITAT Bangalore) - Assessee-wife was not entitled to claim and be allowed exemption under Section 54 and 54 EC on the basis that both assessee’s being husband and wife had suo motu offered rental income equally in their returns of income and their intentions were that said property was a joint property and both of ...

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Section 54EC Count Six month from additional stamp duty payment date: ITAT

Shri Anil Kumar Dulichand Vs ACIT-17 (ITAT Mumbai) - Date of transfer of property to compute the six-months period for the purpose of claiming deduction under section 54EC could not be taken from the date when the purchase agreement was registered because the transfer would complete after additional stamp duty to complete the process of registration w...

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Section 50C cannot be avoided merely for sufficiency of exemption u/s 54EC

Jagdish C. Dhabalia Vs ITO (Bombay High Court) - While giving full effect to the deeming fiction contained under section 50C of the Act for the purpose of computation of the capital gain under section 48, for which section 50C is specifically enacted, the automatic fallout thereof would be that the computation of the assessee’s capital gain and ...

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STCG or LTCG on transfer of ESOP options depends on holding period

N. R. Ravikrishnan Vs ACIT (ITAT Bangalore) - Gain arising on transfer of ESOP options should be taxed as long term capital gains where the holding period was more than 3 years as assessee acquired a valuable and transferable right and the right of share constituted capital assets from the date of grant....

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No TDS on interest on IRFCL 54EC Capital Gains Bond

Notification No. 28/2018-Income Tax [S.O. 2939(E)] - (18/06/2018) - Central Government notifies Indian Railway Finance Corporation Limited 54EC Capital Gains Bond issued by Indian Railway Finance Corporation Limited (IRFCL) vide Notification No. 27/2018-Income Tax for exemption from TDS provisions under clause (iib) of the proviso to section 193 of the Income-tax Ac...

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No TDS on PFC Section 54EC Capital Gains Bond

Notification No. 27/2018-Income Tax [S.O. 2938(E) - (18/06/2018) - Central Government notifies Power Finance Corporation Limited 54EC Capital Gains Bond issued by Power Finance Corporation Limited (PFC Limited) vide Notification No. 27/2018-Income Tax for exemption from TDS provisions under clause (iib) of the proviso to section 193 of the Income-tax Act, 1961. MIN...

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Bonds issued by PFC Ltd eligible for Section 54EC Exemption

Notification No. 47/2017-Income Tax [S.O. 1818(E)] - (08/06/2017) - Section 54EC- Govt Notifies that any bond redeemable after three years and issued on or after 15th June, 2017 by Power Finance Corporation PFC) Limited...

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Recent Posts in "section 54EC"

Section 54EC deduction for Amount not invested in REC Bonds within prescribed time due to Delay in receipt of sale consideration amount

Pr. CIT Vs Shri Mahipinder Singh Sandhu (Punjab and Haryana HC)

Where assessee had deposited sale consideration amount in the Escrow Account as a security in respect of future liabilities of the company/ transferor, the year of taxability, irrespective of the delay in making investment in REC Bonds on account of uncertainty involved for receiving the amount, the year of taxability was year of receipt ...

Read More

Exemption u/s 54EC allowable to legal owner of property as per registered sale deed

Shri Raghuram P Nambyar Vs ACIT (ITAT Bangalore)

Assessee-wife was not entitled to claim and be allowed exemption under Section 54 and 54 EC on the basis that both assessee’s being husband and wife had suo motu offered rental income equally in their returns of income and their intentions were that said property was a joint property and both of them having equal share therein because ...

Read More

Section 54EC Count Six month from additional stamp duty payment date: ITAT

Shri Anil Kumar Dulichand Vs ACIT-17 (ITAT Mumbai)

Date of transfer of property to compute the six-months period for the purpose of claiming deduction under section 54EC could not be taken from the date when the purchase agreement was registered because the transfer would complete after additional stamp duty to complete the process of registration was paid by assessee....

Read More

Income Tax benefits of buying property jointly

Buying a house is a dream for millions of people in India. The government has provided various tax benefits to individuals to encourage them to buy a house property under the ‘housing for all’ initiative. One of the important things to note is that if the property is held jointly, individuals can receive additional tax [&helli...

Read More
Posted Under: Income Tax |

Section 50C cannot be avoided merely for sufficiency of exemption u/s 54EC

Jagdish C. Dhabalia Vs ITO (Bombay High Court)

While giving full effect to the deeming fiction contained under section 50C of the Act for the purpose of computation of the capital gain under section 48, for which section 50C is specifically enacted, the automatic fallout thereof would be that the computation of the assessee’s capital gain and consequently the computation of exemptio...

Read More
Posted Under: Income Tax |

Section 54EC Deduction on Capital Gain Under Income Tax Act

Where the capital gain arises from transfer of long-term capital asset being land or building or both, and the assessee has, at any time within a period of six months after the date of such transfer invested the whole or any part of capital gains, in the 'long-term specified assets', then the capital gain shall be dealt with in accordance...

Read More
Posted Under: Income Tax |

STCG or LTCG on transfer of ESOP options depends on holding period

N. R. Ravikrishnan Vs ACIT (ITAT Bangalore)

Gain arising on transfer of ESOP options should be taxed as long term capital gains where the holding period was more than 3 years as assessee acquired a valuable and transferable right and the right of share constituted capital assets from the date of grant....

Read More

Tax on Sale of Under Construction Property, Indexation & Benefit U/s. 54 / 54EC

Whether the Right to own the Property is a Capital Asset? What is a capital asset is defined in section 2(14) of the I.T. Act, 1961. Under that provision, a capital asset means property of any kind held by an assessee, whether or not connected with his business or profession. The other sub-clauses which deal with what property is not incl...

Read More
Posted Under: Income Tax | ,

Tax benefit under section 54EC on long term capital gain

The benefit under section 54EC can be availed of only if there is an income from a capital asset, being  long-term in nature. Long-term capital gains are the profit that a person makes when he sells any capital asset (wef A.Y 2019-20, the said long term capital asset shall be land or building or both) which he has held for a period excee...

Read More
Posted Under: Income Tax | ,

Capital Gain on Real Estate Transactions

Introduction- The topic of taxation of capital gains on real estate transaction under the income tax act is live and ever interesting topic from point of view of all concerned with such taxation. This is one set of provisions in the Act which has raised maximum number of issues of interpretation. In the recent years several amendments ...

Read More
Posted Under: Income Tax |

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