Section 54E
Capital gain on transfer of capital assets not to be charged in certain cases
Quick Answer
Section 54E (Capital gain on transfer of capital assets not to be charged in certain cases) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.
What changed for Section 54E
Under the Income Tax Act, 1961, Section 54E governs capital gain on transfer of capital assets not to be charged in certain cases. An older exemption provision for investing LTCG in specified National Rural Development Bonds.
The Income-tax Act, 2025 does not retain Section 54E: it is deleted with effect from 1st April 2026, so no equivalent section replaces it. NA. Replaced historically by 54EA, 54EB, and eventually 54EC.
On the ground, changes to Section 54E carry a Low impact. Predecessor to modern Section 54EC.
Sec 54E
Provision Summary
An older exemption provision for investing LTCG in specified National Rural Development Bonds.
Deleted
Provision Summary
NA. Replaced historically by 54EA, 54EB, and eventually 54EC.
Key Changes & Highlights
- Evolution of capital gains bonds.
Related Sections
Frequently Asked Questions
What does Section 54E of the Income Tax Act 1961 deal with?
Section 54E of the Income Tax Act, 1961 covers capital gain on transfer of capital assets not to be charged in certain cases. An older exemption provision for investing LTCG in specified National Rural Development Bonds.
Does Section 54E survive under the Income-tax Act, 2025?
Section 54E has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. NA. Replaced historically by 54EA, 54EB, and eventually 54EC.
Why does the change to Section 54E matter for taxpayers?
The transition impact for Section 54E is rated Low. Predecessor to modern Section 54EC.
What are the key changes to Section 54E under the Income-tax Act, 2025?
Evolution of capital gains bonds. These points are specific to Section 54E (Capital gain on transfer of capital assets not to be charged in certain cases).
Disclaimer: This mapping of Section 54E (Capital gain on transfer of capital assets not to be charged in certain cases) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 54E is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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