Fact-check notes
Last fact-checked: 2026-05-28
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. Tax Year 2026-27 references should be verified against the active 2025 Act utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Section 54EC can help defer or reduce capital gains tax when the taxpayer prefers specified bonds over buying another house.
- Investment must be made in specified bonds within six months from transfer.
- The cap is generally Rs. 50 lakh per financial year across eligible bonds.
- Lock-in restrictions matter; premature transfer can withdraw exemption.
- Interest from bonds remains taxable.
Who this is for
- Property seller not buying a new house.
- Taxpayer with LTCG below Rs. 50 lakh.
- Retiree seeking simple exemption planning.
- CA planning sale before registration.
Documents and data to verify
- Sale deed and date of transfer.
- Capital-gain computation.
- Bond application proof.
- Bank statement and bond certificate.
Common mistakes to avoid
- Missing six-month window.
- Assuming bond interest is tax-free.
- Exceeding cap.
- Pledging/redeeming bonds early.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.