As per Section 54EC exemption in respect of long-term capital gains in the hands of any assessee is available on inveshment in certain bonds. Thus, this section would allow exemption from income tax in respect of long-term capital gains, if invested in select bonds, targeted exclusively on agricultural and rural finance, highways infrastructure and housing.
As per the Finance Act 2006 only two Bonds, namely the bonds issued by National Highways Authority of India and Rural Electrification Corporation Ltd. would qualify for tax exemption.
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