Specified bond for Section 54EC of Income Tax Act – 1961
The benefit under section 54EC can be availed 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 sale any capital asset (w.e.f A.Y 2019-20, the said long term capital asset shall be land or building or both) which he has held for a period exceeding 24 months.
The assesse should within a period of 6 months from the date of transfer invest the gains in Long Term specified bonds as issued by NHAI, REC, PFC and IRFC for a minimum period 5 years if such bonds are issued on or after 01.04.2018.
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