Section 54EC requires investment in:
AMutual fund
BAny government bonds (per relevant Section)
CResidential house
DSpecified bonds (NHAI/REC/PFC/IRFC) within 6 months
Answer & Solution
Correct answer: D. Specified bonds (NHAI/REC/PFC/IRFC) within 6 months
1. Section 54EC exempts LTCG on land/building if invested in specified bonds within 6 months of transfer.
2. Eligible bonds: NHAI, REC, PFC, IRFC with 5-year lock-in.
3. Maximum investment in a FY is Rs. 50 lakhs per assessee.
_Source: ICAI BoS CA Final Paper 7, Ch 4 "Capital Gains"_
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