Capital Gain Relief: Section 54EC offers a tax exemption avenue for long-term asset sales, allowing investment in specified bonds.
Eligibility: Individuals, HUFs, companies, LLPs, and firms can claim the exemption for assets held for at least 24 months.
Investment Window: Taxpayers must reinvest capital gains within 6 months into approved bonds like NHAI, REC, etc.
Investment Limit: The investment cannot exceed INR 50 lakhs in a financial year.
Exemption Calculation: Deduction is the lower of the cost of bonds or the capital gains from the asset sale.
Reporting in ITR: Taxpayers must accurately report bond investments and capital gains exemptions in Schedule CG of ITR.
Considerations: Selling bonds within 5 years revokes the exemption, impacting capital gains calculation.