Nifty 26230.10 0.00 0.00

Nifty

26,230.10--
Sensex 101688.10 23107.10 29.41

Sensex

1,01,688.10+23,107.10(+29.41%)
Trader’s Lounge
Nuvama Partners

Sold a property and worried about taxes?

Minimize the Long-Term Capital Gain Tax on your recently sold property with 54 EC Bonds!
Our Offerings
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R
Rural Electrification Corporation (REC) Ltd.
Coupon
5.25%
Ratings
AAA
Tax Benefit
Under Section 54 EC
Tenure
5 yrs
Frequency of Interest
Annual
I
Indian Railway Finance Corporation (IRFC) Ltd.
Coupon
5.25%
Ratings
AAA
Tax Benefit
Under Section 54 EC
Tenure
5 yrs
Frequency of Interest
Annual
P
Power Finance Corporation (PFC) Ltd.
Coupon
5.25%
Ratings
AAA
Tax Benefit
Under Section 54 EC
Tenure
5 yrs
Frequency of Interest
Annual
Issuer entities of 54EC Bonds
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Rural ElectrificationCorporation Limited or REC bondsRural Electrification
Power FinanceCorporation Limited or PFC bondsPower Finance
National HighwayAuthority of India or NHAI bondsNational Highway
Indian Railway FinanceCorporation Limited or IRFC bondsIndian Railway Finance
Benefits of Investing in 54 EC Bonds
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Affordable investment optionAffordable investment optionMinimum investment as low as ₹ 10,000
Tax BenefitTax BenefitExemption on long-term capital gains and no TDS on interest income
SafetySafetyHighly secured as the bonds are AAA-rated and government-backed
Steady incomeSteady incomeAssured and regular annual income in the form of interest
Important factors for claiming exemption through investment in 54EC bonds
Tax exemption within 6 months of property sale
To qualify for tax exemption, the investment must be made within 6 months from the date of the sale of the immovable property.
5-year lock-in period for investment
The invested amount can only be redeemed after a period of 5 years.
Applies to long-term capital gains from property
The exemption on investment is applicable exclusively to long-term capital gains arising from the sale of immovable property, such as land or buildings not held for less than 24 months.
Maximum exemption limit of Rs 50 lakh
The maximum allowable exemption amount is capped at Rs 50 lakh.
Got Questions? We’ve got you covered! - FAQs

54EC bonds, commonly referred to as capital gains bonds derive their name from section 54EC of the Income Tax Act, which exempts long-term capital gains resulting from the sale or transfer of a long-term capital asset. Notably, the capital asset mentioned in this section refers to an immovable item, such as land or a building.

These bonds are issued by certain permitted Public Sector Units which means these entities are backed by the government.

Lock in period for capital gain bonds is 5 years.

Section 54EC of Income Tax Act states that capital gains tax can be exempt from tax if the gains are invested in specified instruments within a specified time frame.

Capital gains bonds exempts long-term capital gains resulting from the sale or transfer of a long-term capital asset. The maximum limit for investing in 54EC bonds is Rs. 50,00,000.

54EC bonds offer 5% rate of interest payable annually.

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