When can I claim exemption under section 54EC?

Exemption under section 54EC can be claimed if the assessee has within 6 months from the date of transfer of any long term capital asset, invested the amount of capital gain in long term specified bonds as notified by the Government for a minimum period of 3 years.

The Government has notified Bonds of Rural Electrification Corporation Limited (RECL) and National Highways Authority of India (NHAI) for the purpose of this section.

In case these bonds are transferred or converted into money within 3 years of its acquisition, then the capital gain exempted earlier, shall be taxable as deemed capital gain.