The exemption claimed u/s 54EC taken as your taxable income:
If you sell /transfer the bonds within 3 years from the date of its acquisition,
If you take loans by keeping such bonds as security,
the amount of capital gain which was exempt earlier shall be deemed to be the taxable long term capital gain of the financial year in which such bonds are transferred or loan is taken against the security of such bonds.You need to pay tax on the short term capital gain as well on the transfer of bonds.
54EC, Exemption u/s 54EC, Income tax We have explained the type of income on which the exemption u/s 54EC can be claimed.
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