Capital Gain Bonds: Save tax under Capital Gain Tax

Section 54 EC – Capital Gain Bonds

Capital Gain Bonds, or 54EC bonds, are a source to save tax when an individual receives capital gains from selling a property. To save the tax from the profit made after the sale of the property, investment up to Rs. 50,00,000/- only (Rs. 50 Lakhs only) can be done.

The benefits of Capital Gain bonds (54-EC) bonds are:

• These bonds are backed by the Government of India, hence, the risk factor is mitigated.
• Long term Capital gain from the sale of the property can be reinvested in order to save tax
• the investor not only saves tax by investing, but they also earn interest income till the maturity time.

The Features of Capital Gain Bonds :

• The bonds are AAA rated
• The Interest is payable, but no TDS is deducted
• The Lock-in period is 5 years and non-transferable
• The maximum investment is Rs. 50 lakhs in a financial year
• The rate of interest is 5% payable annually

The companies issuing 54EC Bonds are :

• Power Finance Corporation
• National Highways Authority of India
• Indian Railway Finance Corporation
• REC Limited

To know more information and buy Capital Gain Bonds (54EC), call us at 9886568000