54EC BONDS – CAPITAL GAIN BONDS

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.

Capital Gains Bonds are issued by the below Corporations:

Rural Electrification Corporation Ltd (REC )

National Highway Authority of India (NHAI)

Power Finance Corporation (PFC)

Indian Railways Finance Corporation (IRFC)

Key features:

Issue Details
On-going

Tenure

5 years

Rate of Interest

5.75% 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)

Disclaimer : Interest Rates are subject to revision by the respective Companies/Government from time to time. Rating are subject to revision by credit rating agencies. EKAM WEALTH acts as a referral agent to these companies and the offer is brought to you by the companies subject to fulfilment of eligibility criteria, terms and conditions etc. Investors are advised to read the Terms and conditions offered by respective companies carefully before taking any investment decision.