Capital Gains Bonds
Invest to save long term under Section 54 EC
Key Features of Capital Gain Bonds specified under Section 54EC:
- No TDS but interest earned is taxed
- Non transferable and non negotiable bonds
- Maximum investment is Rs. 50 lakh
- Maximum of 500 bonds can be bought at Rs. 10000 per bond
- Tenure of the bond is 5 years
- Available in Physical as well as demat form
Long-term capital gain is the gain that is derived out of a sale of an asset (Land or Building) that has been held for more than two years. You can invest the gain in certain specified bonds to claim tax exemption within 6 months of the date of sale of the asset. Save tax on long-term capital gains by investing in 54EC bonds such as REC capital gain bonds, NHAI capital gain bonds respectively. Budget 2018 has proposed to amend the 54EC section of the Income Tax Act wherein capital gains arising only from the sale of assets such as land or building or both will be considered for tax exemption. It has also proposed to increase the lock-in period to 5 years from 3 years. This amendment will take effect from 1st April 2019.
| Name of the Issuer | Min Application | Max Application | Tenure | Coupan Rate | Interest Payment Date |
| Rural Electrification Corp Ltd ( REC) | 20000 | 50,00,000 | 5 Yrs | 5% p.a | Annually on 30th June every year |
| National Highway Authority of India( NHAI) | 10000 | 50,00,000 | 5 Yrs | 5% p.a | Annually on 1st April every year |
| Indian Railway Finance Corporation( IRFC) | 20000 | 50,00,000 | 5 Yrs | 5% p.a | Annually on 15th Oct every year |
| Power Finance Corporation(PFC) | 20000 | 50,00,000 | 5 Yrs | 5% p.a | Annually on 31st Jul every year |
*Please note rate of Interest , duration & other features may change in future .