Section 54EC → Section 71
Exemption on investment in certain Bonds
Quick Answer
Section 54EC of the Income Tax Act, 1961 (Exemption on investment in certain Bonds) corresponds to Section 71 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 54EC
Provision Summary
Exemption up to Rs. 50 Lakhs if long-term capital gains from land/building are invested in NHAI or RECL bonds within 6 months.
Sec 71
Provision Summary
Retained. Lock-in period of 5 years remains unchanged.
Key Changes & Highlights
- Bond issuance completely digitized. Demat account linking made mandatory for claiming the exemption.
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Frequently Asked Questions
What does Section 54EC of the Income Tax Act 1961 deal with?
Section 54EC (Exemption on investment in certain Bonds) Exemption up to Rs. 50 Lakhs if long-term capital gains from land/building are invested in NHAI or RECL bonds within 6 months.
What is the new section number for Section 54EC under the Direct Tax Code 2025?
Section 54EC of the ITA 1961 maps to Section 71 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 54EC under the new tax code?
Section 54EC is marked as "Retained" with status "Active". Impact: Medium - Standard tax-saving avenue for real estate sellers.
What are the key changes to Section 54EC under DTC 2025?
Bond issuance completely digitized. Demat account linking made mandatory for claiming the exemption.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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