Yes, there is a lock-in period for bonds under section 54EC of the Income Tax Act. The capital gains amount invested in these bonds must be held for a minimum period of 5 years to retain the tax exemption benefits provided by this section.
If the bonds are sold or redeemed before the completion of this 5-year period, the tax exemption granted under section 54EC will be withdrawn, and the previously exempted long-term capital gains may become taxable.
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