54EC exemption: Rs 50 lakh limit is annual, not twice in one year

• Section 54EC allows tax exemption on long-term capital gains from land and building sales by investing in prescribed capital gains bonds.
• There is a ceiling of Rs 50 lakh per financial year for claiming exemption under Section 54EC.
• You cannot claim the 54EC exemption twice in the same financial year if you have already invested Rs 50 lakh.
• If the six-month investment window extends into the next financial year, you can invest an additional Rs 50 lakh in the new fiscal year, provided it is within six months of the asset sale.

Why It Matters: This clarifies 54EC tax benefit limits for capital gains investments.