ANAND KUMAR (ADVOCATE) 07 September 2012
Sir, as per Section 54EC if any long term capital gains amount is deposited into specified bonds within 6 months of transferreing of the property, then the tax liability gets deferred for 3 years. I would like to know that if the assessee who bought the bonds and did not utilise it in any way for 3 years then will the amount of capital gains would be free for him to be used at his own sweet will, or he will be taxed for capital gains on the maturity amount at the expiry of 3 years.
R RAJAGOPALAN (ADVOCATE) 08 September 2012
Reply: If the assessee who bought the bonds and did not utilise it in any way for 3 years then will the amount of capital gains would be free for him to be used at his own sweet will? Yes
Will he be taxed for capital gains on the maturity amount at the expiry of 3 years? - No .
VIVEK NAIK (Senior Financial Advisor) 15 September 2012
Hi,
the amount invested in the capital gain bonds will be available to the investor,as tax free money after maturity.If the investor puts this money in capital gain savings account,then he is bound to use the money for reinvesting in property,before the account is matured,or else,the investor has to pay tax on the money,not reinvested,as if he has earned the long term capital gain in the year of maturity of the said capital gain savings account.In case of money invested in capital gain bonds u/s 54 EC,there is NO TAX LIABILITY,AFTER MATURITY OF THE BONDS.
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