Exemption is Allowed provided the Assessee has long term Capital Gains on transfer of any long term Capital Asset (being land or building or both w.e.f A.Y 2019-20)
- The taxpayer should be any assesses.
- Assets Sold should be long term.
- Investment should be made In NHAI bond or RECL bond, redeemable after 5 year.
- Investment should be made within 6 months from the date of transfer.
- Investment in Specified Unit Should not exceed 50 lakh during the current year and succeeding financial year.
- If new asset is sold within 5 years amount earlier exempted under this section will be reduced from its COA to calculate capital gains thereon.
- If a loan is taken on the security of the new specified asset within 3/5 years, the same will be treated as capital gains.
- Investment in specified bonds should not exceed Rs. 50 lakhs during the current and succeeding financial Year.
- The Assesee is not allowed to convert the Security into Cash. Means The Assessee is not allowed to take Loan on the basis of security.