54EC Bonds: No Double Investment in Same Year, ₹50 Lakh Annual Limit

• Section 54EC allows exemption on long-term capital gains from selling land or buildings by investing in specific capital gains bonds.
• The maximum investment for exemption under Section 54EC is ₹50 lakh per financial year.
• An individual cannot invest more than ₹50 lakh in capital gains bonds in a single financial year to claim exemption.
• If the six-month investment window extends into the next financial year, an additional ₹50 lakh can be invested then, subject to the annual limit.

Why It Matters: Understand Section 54EC's annual investment limit for capital gains tax exemption.