MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION New Delhi, the 29th June,2006
S.O.963 (E)- In exercise of the powers conferred by sub clause (i) of clause (b) of the Explanation to Section 54EC of the Income-tax Act, 1961 (43 of 1961) the Central Government hereby notifies the bonds for an amount of Rupees one thousand five hundred crores (redeemable after three years) to be issued by the National Highways Authority of India constituted under Section 3 of the National Highways Authority of India Act, 1988 (68 of 1988) during the financial year 2006-2007 as 'long term specified asset' for the purposes of the said section.
[Notification No 142/2006/F No 142/09/2006.TPL] SHARAT CHANDRA, Director
NOTIFICATION New Delhi, the 29th June,2006
S.O.964 (E)- In exercise of the powers conferred by sub clause (ii) of clause (b) of the Explanation to Section 54EC of the Income-tax Act, 1961 (43 of 1961) the Central Government hereby notifies the bonds for an amount of Rupees four thousand five hundred crores (redeemable after three years) to be issued by the Rural Electrification Corporation Limited, a company formed and registered under the Companies Act,1956 (1 of 1956) during the financial year 2006-2007 as 'long term specified asset' for the purposes of the said section.
[Notification No 143/2006/F No 142/09/2006.TPL] SHARAT CHANDRA, Director F.NO.142/09/2006- TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes
New Delhi, the 30th June 2006
Order under section 119(2)(c) the Income-tax Act, 1961
1. Section 54EC of the Income-tax Act, 1961 provides that the capital gain arising from the transfer of a long term capital asset shall not be charged to tax to the extent such gains are invested in 'long term specified asset' within a period of six months after the date of such transfer.
2. Prior to the amendment to section 54EC by the Finance Act, 2006, 'long term specified asset' for the purposes of said section means any bond redeemable after three years and issued by the National Bank for Agriculture and Rural Development ( NABARD), National Highways Authority of India (NHAI), Rural Electrification Corporation Limited (REC), National Housing Bank (NHB), or Small Industries Development Bank of India (SIDBI).
3. However, after the amendment to the said section by the Finance Act,2006, 'long term specified asset' means any bond, redeemable after three years and issued on or after 1.4.2006 by NHAI and REC and notified by the Central Government in the Official Gazette for the purposes of the said section.It has been reported by NHAI and REC that consequent upon this amendment proposed by the Finance Bill, 2006, issue of old bonds was closed on 29.3.2006.
4. Bonds of NHAI and REC under the amended provision of section 54EC have been notified by the Central Government vide Notification S.O. 963(E) and S.O. 964 (E) dated 29.06.2006 for Rs. 1,500 crores and Rs. 4,500 crores respectively to be issued during financial year 2006-07. It has been informed by REC and NHAI that these bonds will be issued from 1st July, 2006 and 20th July, 2006 respectively.
5. It has been brought to the notice of the Central Board of Direct Taxes that some persons could not avail of the benefit under section 54EC of the Income -tax Act on account of non availability of the capital gain bonds. Further, for some other persons the effective time available for making the investment is less than six months because of non availability of these bonds.
6. With a view to removing the hardship caused to the taxpayers, the Central Board of Direct Taxes, in exercise of powers conferred by clause (c) of sub section (2) of section 119 of the Income- tax Act, 1961, hereby orders that the limitation of six months for making the investment under section 54EC of capital gains arising from the transfer of a long term capital asset, is extended
(i) upto 30th September, 2006 in case of persons where the long term capital asset was transferred between 29.09.2005 and 31.12.2005 (both dates inclusive) ; (ii) upto 31st December, 2006 in case of persons where the long term capital asset was transferred between 01.01.2006 and 30.06.2006 (both dates inclusive);
(Sharat Chandra) Director Government of India
Copy to (i) National Highways Authority of India. (ii) Rural Electrification Corporation Limited (iii) The Chairman, Members and all other officers in the CBDT of the rank of Under Secretary and above. (iv) The DIT(RSP & PR), New Delhi for printing in the quarterly tax bulletin and for circulation as per usual mailing list. (v) The Comptroller and Auditor General of India (40 capies) (vi) The DGIT (Vigilance), New Delhi. (vii) The Joint Secretary and Legal Advisor, Ministry of Law & Justice, New Delhi (viii) Director General of Income-tax, NADT, Nagpur.
(Sharat Chandra) Director (TPI-IV)
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