Expert tax advice on navigating the 6-month deadline for Section 54EC capital gains bonds, setting off F&O business losses against cash market gains, and why you must re-check your AIS before filing in July.

Updated: June 12, 2026 22:03 IST

l I sold my flat in January and have not yet invested the money in capital gains tax saving bonds till now. How do I calculate the capital gains and by when should I invest the money in the bonds?—Prakhar Gupta

Capital gains arising from the sale of a flat are computed by deducting the cost of acquisition, cost of improvement, and eligible transfer expenses from the sale consideration received. To claim exemption under Section 54EC of the Income-tax Act, 1961, the resultant long-term capital gains should be invested in specified bonds issued by notified entities such as NHAI, REC, PFC, or IRFC.

The investment should be made within six months from the date of transfer of the property, subject to an overall investment limit of Rs 50 lakh.  Also, the bonds are subject to a lock-in period of five years, during which they cannot be transferred, converted into money, or pledged as security for any loan or advance. Any violation of these conditions will result in the withdrawal of the exemption claimed.

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l How do I set off losses from options trading with gains made from cash market trading?—Vipul Arora

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Losses arising from futures and options (F&O) trading are treated as business losses and can be set off against other business income and capital gains. Where losses remain unabsorbed, they may be carried forward for up to eight assessment years, provided the ITR is filed within the prescribed due date. However, carried-forward business losses can only be adjusted against future business income and not against any other heads of income. Set-off losses can be claimed in the income tax return, specifically ITR-3.

l I will file returns in July this year. Should I check the previous year AIS again in case of any missing entry?—Manav Dev

Yes, download and review the latest Annual Information Statement (AIS) immediately before filing your ITR. AIS is updated periodically and may capture additional information reported by banks, mutual funds, registrars, employers and other reporting entities.

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In particular, information relating to the fourth quarter (January to March) is typically updated by mid-June and may not have been reflected in earlier versions of the statement. At the same time, you should not rely solely on AIS while preparing their returns. The details appearing in AIS should be reconciled with supporting documents such as bank statements, interest certificates, capital gains reports, salary records and other relevant financial documents to ensure complete and accurate reporting of income.

The writer is senior partner, Nangia & Company. Send your queries to fepersonalfinance@expressindia.com

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This article was first uploaded on June twelve, twenty twenty-six, at zero minutes past ten in the night.

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