Notification u/s 54 EC (3) (ba) - W.e.f. 08 August 2017

Capital gain not to be charged on investment in certain bonds.

Sec 54 EC (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 the whole or any part of capital gains in the long-term specified asset, the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,—

(a)  if the cost of the long-term specified asset is not less than the capital gain arising from the transfer of the original asset, the whole of such capital gain shall not be charged under section 45;

(b) if the cost of the long-term specified asset is less than the capital gain arising from the transfer of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of acquisition of the long-term specified asset bears to the whole of the capital gain, shall not be charged under section 45 

Sec 54 EC (3) (ba)- "Long term capital assets" for making any investment under this section on or after the 1st day of April, 2007 means any bond, redeemable after three years and issued on or after the 1st day of April, 2007 by the National Highways Authority of India constituted under section 3 of the National Highways Authority of India Act, 1988 (68 of 1988) or by the Rural Electrification Corporation Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956); or any other bond notified by the Central Government in this behalf.



                                          NOTIFICATION dated  08 AUGUST 2017

S.O. 2529(E).—In exercise of the powers conferred by clause (ba) of Explanation to section
54EC of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that any bond redeemable after three years and issued by the Indian Railway Finance Corporation Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956), on or after the date of publication of this notification in the Official Gazette, as ‘long-term specified asset’ for the purposes of the said section

## Hence an additional Investment to get exemption u/s 54EC has been notified w.e.f. 08 August 2017

Please refer the link of the notification - http://www.incometaxindia.gov.in/communications/notification/notification79_2017.pdf

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