Making educated decisions on investments and tax management requires a thorough understanding of the various provisions of the Income Tax Act. The 54EC Section is one such crucial part for anyone trying to reduce their capital gains tax. We will discuss the 54EC Section , the advantages of buying 54EC bonds , and how to use these investments to maximize your tax planning in this article. What is the 54EC Section? For people who have made long-term capital gains from the sale of capital assets, the Income Tax Act of 1961’s 54EC Section offers tax relief. By investing the proceeds of the sale of these assets in specific bonds, also referred to as 54EC bonds, taxpayers can claim an exemption from long-term capital gains tax under this clause. Key Highlights of Section 54EC: 1. Eligibility: Under Section 54EC , only long-term capital gains are excluded. Gains from short-term capital are not eligible. 2. Bonds Specified: To be eligible for th...
RR Finance Leading Online Mutual Fund Investment Platform Offers Facilities Like IPO, Insurance, NCDs, New fund offers, bond, fixed maturity plans, & gold.