Under Section 54 EC of Income Tax, 1961 an investor need not pay any tax on any long-term capital gains arising on sale of any asset, if the amounts of capital gains are invested in certain specified bonds i.e., 54 EC Bonds.

The Key features of Capital Gains Bonds are listed below:

Issue Details On-going
Tenure 5 years
Rate of Interest 5.00% p.a. payable annually
Taxation Interest is taxable although no TDS is deducted
Redemption Automatic Redemption after 5 Years
Rating AAA rated
Mode of Holding Physical or Demat
Min Investment 1 Bonds (Rs. 10,000)
Max Investment 500 Bonds (Rs. 50,00,000 Lacs)

Capital Gains Bonds are issued by the below Government Organisations:

Bonds Issue Details Coupon Rating Tax Benefit Tenure
Rural Electrification Corporation On-Going 5.00% p.a. AAA Rating Taxable Bonds with benefits under Section 54 EC of Income Tax Act, 1961 5 Years
National Highway Authority of India On-Going 5.00% p.a. AAA Rating 5 Years
Power Finance Corporation On-Going 5.00% p.a. AAA Rating 5 Years
Indian Railways Finance Corporation On-Going 5.00% p.a. AAA Rating 5 Years

 

We provide services to our clients for investing in these bonds and save them from the burden of tax.

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