Section 54EC allows exemption on long-term capital gains from land, building, or other notified assets when the gain is invested in specified bonds (such as NHAI or REC) within six months of transfer, subject to the investment cap.
Investor checklist
- Confirm asset qualifies as long-term capital asset
- Invest in eligible 54EC bonds within six months
- Lock-in period applies — premature redemption loses exemption
- Report in Schedule CG and exemption schedule in ITR
Alternatives include Section 54 / 54F house reinvestment, capital gains overview, and capital gains filing service.
