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What is the difference between Section 54EA and Section 54EB as far as capital gains tax exemptions are concerned?

April 26, 2017capital gains concerned difference exemptions section tax

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What is the difference between Section 54EA and Section 54EB as far as capital gains tax exemptions are concerned?

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Under Section 54EA the net Consideration (total sale consideration – relevant expenses) arising out of sale of Long Term capital assets need to be invested in specified in specified mutual funds with a lock-in period of 3 years. Under Section 54EB just the capital gains are re-invested but the lock-in period is 7 years. Please note that in the latest budget this exemption is being withdrawn for investments in mutual funds and is being restricted only to bonds issued by NABARD and by the NHAI.