Expanding the scope of long term bonds under 54EC -
The
existing provision of section 54EC provides that capital gain to the extent of
Rs. 50 lakhs arising from the transfer of a long-term capital asset shall be
exempt if the assessee invests the whole or any part of capital gains in
certain specified bonds, within the specified time.
Currently , investment in bond issued by the
National Highways Authority of India (NHAI) or by the Rural Electrification
Corporation (REC) Limited is eligible for exemption under this section.
In order to widen the scope of the section for
sectors which may raise fund by issue of bonds eligible for exemption under
section 54EC, it is proposed to amend section 54EC so as to provide that
investment in any bond redeemable after three years which has been notified by
the Central Government in this behalf shall also be eligible for exemption.
This amendment will take effect from 1st April, 2018 and will, accordingly ,
apply in relation to the assessment year 2018-19 and subsequent years. [Clause
27]
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