Capital Gain Bonds- Tax Benefit under section 54EC

Economics 10 February 2021 2:59:PM


What are capital gain bonds?

Capital gains arising from transfer of Long-term capital assets can be invested in these bonds within a period of six months from the date of transfer of the asset for getting exemption from the capital gains tax.

Highlights of the Bond :

·         Get tax exemption on capital gain. 

·         Issuers - REC, NHAI, PFC and IRFC

·         Minimum Investment of Rs. 10000 /- (One bond) in NHAI; Rs. 20000 /- (two bonds) in REC, PFC and IRFC.

·         Maximum investment limit of up to Rs. 50 Lakhs (500 Bonds) in a Financial Year across the four available Bonds.

·         Face Value- Rs. 10000 Per bond.

·         Lock In period - Automatic redemption after “5” years.

·         5.00% interest per annum.

·         100% risk free payment.

·         No TDS from domestic investors

·         Available in Physical and Demat form

Documents required are-

Self attested Pan card

Self attested Aadhar Card (of all holders)

Cancelled Cheque for NEFT payment of Interest.

Payment Cheque in favor of the respective company the investor is applying for.

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