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TMI BlogGuidelines for companies and mutual funds in respect of approved investments for purposes of sections 54EA and 54EBX X X X Extracts X X X X X X X X Extracts X X X X ..... truments. The approved instruments under both the aforesaid sections have been notified separately. The Board have framed the following guidelines for approving investment instruments for the purposes of the above sections :— 1. (a) Applications to be sent by public companies and public financial institutions to the CBDT for notifying investment instruments. (b) Mutual Funds referred to in section 10(23D) of the Income-tax Act including Unit Trust of India, need not make applications for this purpose. 2. Sixty per cent of Capital (hereinafter called investible capital) raised through bonds or debentures to be invested in infrastructure facilities as defined in sub-section (12) of section 80-IA of the Income-tax Act, 1961, or in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of these sections capital gains arising from the transfer of a long-term capital asset on or after 1st October, 1996, are exempted from capital gains tax if the amount of net consideration (section 54EA) or the amount of capital gain (section 54EB) is invested in certain specified assets. The Central Board of Direct Taxes have notified the following instruments for the purposes of section 54EA and section 54EB : A. For the purposes of section 54EA : 1. all bonds, redeemable after a period of three years, issued or to be issued by the Housing and Urban Development Corporation Limited, New Delhi; 2. all units, repurchasable after a period of three years, issued or to be issued by any mutual fund (including the Unit Trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... New Delhi, dated 20-12-1996. clarification 3 1. Circular No. 748, dated 19th December, 1996 (Clarification 1) laid down guidelines in respect of approved investments for purposes of section 54EA and section 54EB of the Income-tax Act. Subsequent to the issue of those guidelines, the Income-tax (Second Amendment) Ordinance, 1996 has been promulgated on 31-12-1996. By virtue of section 2 of the Ordinance, shares issued by a public company have been included in the investment instruments which would qualify for exemption from capital gains tax under section 54EA and section 54EB. 2. The guidelines laid down for bonds and debentures in Circular No. 748 will also apply to the shares issued by public companies with regard to the proced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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