According to section 54EC, any person (individuals, HUFs, partnership firms, companies etc.) can avail of exemption in respect of long-term capital gains (arising from the sale of long-term capital assets other than equity shares and securities), if the capital gain is invested in Capital Gain bonds. The exemption will be the amount of capital gain or the amount of investment made, whichever is lessThe exemption is subject to :
– The investment is made within 6 months from the date of transfer of the asset
– Maximum investment limit of up to Rs. 50 Lakhs in a Financial Year per individual.
– If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be tax exempted.