Investment of Rs. 1 crore in bonds specified under section 54EC- Whether Possible:
Limit of investment for the purposes of section 54EC is Rs. 50 lakhs in a financial year. Investment within 06 months is the investment for that financial year in which transfer has taken place. But, any subsequent investment is to be considered as part of the investment of financial year in which transfer has taken place. Therefore, even if the assessee manages his affairs in such a way that investment of Rs. 50 lakh is made in one financial year and investment of another Rs. 50 lakh is made in another financial year but within the period of six months from date of transfer then also deduction under section 54EC cannot exceed Rs. 50 lakhs.- Vide Asstt. CIT v. Raj Kumar Jain & Sons (HUF) (2012) 48 (II) ITCL 2 (JP-Trib)
Source: The Hitwada News Paper
Limit of investment for the purposes of section 54EC is Rs. 50 lakhs in a financial year. Investment within 06 months is the investment for that financial year in which transfer has taken place. But, any subsequent investment is to be considered as part of the investment of financial year in which transfer has taken place. Therefore, even if the assessee manages his affairs in such a way that investment of Rs. 50 lakh is made in one financial year and investment of another Rs. 50 lakh is made in another financial year but within the period of six months from date of transfer then also deduction under section 54EC cannot exceed Rs. 50 lakhs.- Vide Asstt. CIT v. Raj Kumar Jain & Sons (HUF) (2012) 48 (II) ITCL 2 (JP-Trib)
Source: The Hitwada News Paper
