Section 18 - Amendment of section 54EC - Finance Act, 2007

Amendment of section 54EC. 18. In section 54EC of the Income-tax Act, - (a) in sub-section (1), the following proviso shall be inserted, namely:- "Provided that the investment made on or after the 1st day of April, 2007 in the long-term specified asset by an assessee during any financial year does not exceed fifty lakh rupees."; (b) after sub-section (3), in the Explanation,- (i) for clause (b), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2006, namely:- '(b) "long-term specified asset" for making any investment under this section during the period commencing from the 1st day of April, 2006 and ending with the 31st day of March, 2007, means any bond, redeemable after three years and issued on or after the 1st day of April, 2006, but on or before the 31st day of March, 2007, - (i) by the National Highways Authority of India constituted under section 3 of the National Highways Authority of India Act, 1988; or ( 68 of 1988) (ii) by the Rural electrification Corporation Limited, a company formed and registered under the Companies Act, 1956, (1 of 1956.) and notified by the Central Government in the Official Gazette for the purposes of this section with such conditions (including the condition for providing a limit on the amount of investment by an assessee in such bond) as it thinks fit;'; (ii) in clause (b) as so substituted, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2006, namely:- "Provided that where any bond has been notified before the 1st day of April, 2007, subject to the conditions specified in the notification, by the Central Government in the Official Gazette under the provisions of clause (b) as they stood immediately before their amendment by the Finance Act, 2007, such bond shall be deemed to be a bond notified under this clause,"; (iii) after the proviso as so inserted, the following clause shall be inserted, namely:- '(ba) "long-term specified asset" for making any investment under this section on or after the 1st day of April, 2007 means any bond, redeemable after three years and issued on or after the 1st day of April, 2007 by the National Highways Authority of India constituted under section 3 of the National Highways Authority of India Act, 1988 or by the Rural Electrification Corporation Limited, a company formed and registered under the Companies Act, 1956.'. (68 of 1988. 1 of 1956.)