Why Claiming Section 54EE Exemption is Impossible !

Section 54EE of the Income Tax Act was introduced as an incentive to startup ecosystem vide Finance Act 2016. Under this provision, the person investing the long capital gain arising on sale of a long term capital asset, in a long term specified asset within six months after the date of transfer of the original capital asset can claim the exemption from tax. The maximum exemption one can claim under section 54EE is fixed at 50 Lakhs.