Investment u/s 54EC

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..... Investment u/s 54EC
Query (Issue) Started By: - MANISH KHANNA Dated:- 20-10-2013 Last Reply Date:- 22-10-2013 Income Tax
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Income Tax
Suppose capital gains of Rs 1.50 crores arises on 01 Jan 2012. If an individual invests Rs 50 lacs by 31Mrach 2012 and 50 lacs on 2 April 2102, will the entire 1.00 crores be eligible u/s54 EC Reply By Mritunjay Kumar: The Reply: Yes, the .....

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..... assessee is very much eligible for deduction of entire amount of Rs.1.00 crore. Section 54EC reads as: "54EC. (1) Where the capital gain arises from the transfer of a long-term capital asset (the capital asset so transferred being hereafter in this section referred to as the original asset) and the assessee has, at any time within a period of six months after the date of such transfer, invested .....

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..... the whole or any part of capital gains in the long-term specified asset.............................. [Provided that the investment made on or after the 1st day of April, 2007 in the long-term specified asset by an assessee during any financial year does not exceed fifty lakh rupees.] Further, you may refer to the case Aspi Ginwala Versus Assistant Commissioner of Income-tax, Circle-5, Baroda r .....

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..... eported in [2012 (4) TMI 195 - ITAT AHMEDABAD] Reply By Mritunjay Kumar: The Reply: As both the requirements of section 54EC are satisfied. Therefore, deduction of full amount of 1.00 crore allowed. Reply By MANISH KHANNA: The Reply: Will the ITAT judgment stand the test of equality as enshrined in the Constitution because it creates anomalous situation in so far as the benefit of higher dedu .....

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..... ction is not available to a tax payer who sells the property let us say on the 1st of May of a financial year. How far will the rule of literal construction be of assistance has to be seen.
Discussion Forum - Knowledge Sharing .....

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