LTCG Section 5EC and Section 54 F both benefits or either one

POSTED BY Samrat sarkar ON April 24, 2013 7:08 pm COMMENTS (3)


Hi, Today we have sold our residential- 30 yr old house (2 -Floors). As per the advise in this Forum we will be buying the Section 54 EC Bonds (NHAI)

 Question: Ground Floor was constructed in the year 1977. First Floor in the year 1986.

       1. Whether we should get valuation done by Local Govt Reg Valuer for the year 1981 and 1986 separately or valuation of the whole house for the year 1986 is enough ?( This valuation will be done before we calculate LTCG.)

       2. Can we buy both Section 54 EC Bonds (NHAI) 50 lakhs (max limit) and a residential flat-India ? (Can we avail the benefits of Section 54F and Section 54 EC both or only one benefit?) (This is only for the case when our Long Term Capital Gain becomes greater than 50 lakhs. – I am suspecting our Long Term Capital Gain will be approx 60 lakhs.)

     3. What Financial Year Inflation Index should we use to calculate Long Term capital Tax gain ?- Sale Date: April 10 2013 (FY 2012-2013- Index 852  or FY2013-2014- Data To be released Sept 2013) 




3 replies on this article “LTCG Section 5EC and Section 54 F both benefits or either one”

  1. Dear Samarat, please do quote the current income of your father in FY 2013-2014. Also provide the tentative LTCG amount based on 910 Index.



  2. Samrat sarkar says:

    Thanks Ashal for answering. Property belongs to my father- age 80+. We will ask the Local Govt (Kolkata) Registered valuer to give Valuation Certificate for the Ground floor in FY 1981-82 and FY 1986-87. We will use the tentative FY2013-2014 Cost of Inflation Index @910 for calculation of the total LTCG. We will invest the LTCG amount into Section 54 EC Bonds (max 50 lakhs).

    It looks if the LTCG amount is more than 50 lakhs then can we have a choice investing in a residential flat (also avail the benefits of Section 54F along with section 54 EC). Please Clarify.

  3. Dear Samrat, as the ground floor was constructed in 1977, please arrange the valuation for it separately ffor 1981. In case actual expenses are not know for each floor, ask the valuer to provide the individual figures for 1981 & 1986. Based upon the data, ccalculate your LTCG by using a tentative Cost Inflation Index for current FY around 910.

    Both benefits can be availed by you. From your prev. discussions we know the property beongs to your father, in that case, I w’d like to know his current age & calculated LTCG @ 910 Index to advise clearly where to invest & how much.



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