Rural Electrification Corporation Limited
Power Finance Corporation
National Highways Authority of India
Indian Railway Finance Corporation
Lock-in period
of 5 Years
5%
Per Annum
Taxable Interest
No TDS deducted
AAA rated Highest Safety
For a period of
5 Years
Rs. 50L
In a financial year
Individuals who have sold their property and received capital gains
Hindu Undivided Family can make investments through the Karta of the family
54EC Bonds involve tax exemptions on long-term capital gains for investors who have sold their properties.
The investment should be made within six months from the date of sale. The investment for individual investors is capped at Fifty lakhs. For partnership businesses, each partner qualifies to invest Fifty lakhs.
Investors can gain tax exemptions under section 54EC with capital gain bonds. 54EC Bonds do not allow any tax exemptions on short term capital gains tax.
54EC Bonds are issued by PSU's notified by the government ( REC , PFC , NHAI and IRFC).
Since the interest rate on these bonds are fixed, there is no need to keep an eye on interest rate fluctuation.
An investor can choose the mode of issuance. The bonds can be credited in their DEMAT account or can be purchased in physical form.
Investors can gain tax exemptions under section 54EC with capital gain bonds. 54EC Bonds do not allow any tax exemptions on short term capital gains tax.
54EC Bonds are issued by PSU's notified by the government ( REC , PFC , NHAI and IRFC).
Since the interest rate on these bonds are fixed, there is no need to keep an eye on interest rate fluctuation.
An investor can choose the mode of issuance. The bonds can be credited in their DEMAT account or can be purchased in physical form.
As per Section 54 EC of the Income Tax Act, 1961:
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