Income Tax: You have to invest in Section 54EC bonds within 6 months of sale of property

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Published: December 18, 2018 12:08:40 AM

The investment period in Section 54EC bonds for saving capital gains tax is within a period of six months from the date of transfer of land or building or both.

You have to invest in Section 54EC bonds within 6 months of sale of property

What is the investment period in bonds under Section 54 EC for capital gains tax?
– CS Umesh
The investment period in Section 54EC bonds for saving capital gains tax is within a period of six months from the date of transfer of land or building or both. Invest-ment must be made in specified bonds, like RECI and NHAI, not redeemable before five years and not sold before five years, otherwise such gain shall be taxable in the year in which such bonds are sold.

If I repay my home loan, I shall not get any tax benefits. In that case, can I buy another house and claim tax benefits?
—Pradip Kumar
Repayment of home loan is eligible for tax deduction if the loan is taken for purchase/ construction of a house and construction is completed within five years from the end of the financial year in which the loan is taken. Interest paid on such home loan is eligible for deduction as per Section 24. For self-occupied house property, you can claim maximum deduction of `2 lakh. There is no such limit of interest deduction in case of let-out property but the overall loss from house property is restricted to `2 lakh. Further, as per Section 80C, you can claim deduction up to `1.5 lakh for the principal amount paid on such home loan. In case you purchase a new house, other than deduction for loan repayments as explained above, you can claim deduction for stamp duty and registration charges under Section 80C.

My father passed away in June this year. He had pension income, consultancy income and interest from bank deposits. Do I have to file his income tax returns for AY 2018-19?
—Mangat Kumar Singh
If total income of your father exceeds the minimum exemption limit, i.e., `2.5 lakh (`3 lakh in case of senior citizens), you will need to file ITR on his behalf after registering yourself as his legal representative on the income tax portal. As per Section 159, in case a person dies then his legal representative shall file the return of income on behalf of the deceased and in case of any tax liability, it shall be limited to the extent to which the estate is capable of meeting the liability. Further, you can recover the password of your father’s income tax account. You just need to go to the portal, click on forgot password, enter the required details, request for OTP or any other provided method to reset the password.

The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to
fepersonalfinance@expressindia.com

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