Invest in Capital Gain Bonds to save on your long-term capital gain taxes.
54EC bonds provide an annual interest rate of 5.25%.
Transferring 54EC bonds between individuals is not permitted at any time.
Since April 2018, 54EC bonds have had a lock-in period of 5 years.
No TDS is deducted for resident individual however TDS will be deducted for NRIs. Interest is taxable as per investor income slab for all investors
The individual bond value is Rs 10,000, and a minimum of 2 bonds, totaling Rs 20,000, are required for PFC, IRFC, and REC. The maximum investment allowed in 54EC bonds is 500 bonds, equivalent to Rs 50 lakhs in a financial year.
*In selected Cities
RR has been an authorised broker/arranger with all issuers of Capital Gain Bonds since their inception. RR is also among the top mobilizers of capital gain bonds in India. We have a pan-India presence through our network and offices.
Safe and secure
Capital gain bonds 54 EC are a safe investment option as they are backed by the government and therefore carry minimal risk.
Tax saving option
Capital gain bonds are tax exempted which makes it a great tax saving investment option that can also be reinvested.
High Rating
54 EC Bonds have a rating of AAA as these bonds are backed by the government. This makes these bonds a safe investment option.
Additional income
Investors can earn 5.25% interest annually on their investment.
The eligibility to invest in these bonds, commonly referred to as 54EC bonds, is quite broad.
Here’s a breakdown of who is eligible to invest in these bonds:
Disclaimer :- It’s always advisable to consult with a tax advisor or financial expert for personalized advice regarding investments and tax planning.
54EC Capital Gain Bonds are a type of financial instrument issued by specified institutions in India. These bonds provide a tax-saving option for those who have incurred long-term capital gains from the sale / transfer of long-term capital assets being land, building or both. The entire capital gain amount invested in these bonds would be exempted from tax u/s 54EC.
The Finance Act 2017 provides that in case of an immovable property being land or building or both, the period of holding should be 24 months or more to qualify as long-term capital asset.
Yes. The person must invest capital gains within 6 months from the date of asset transfer in order to avail tax exemption
These bonds are typically issued by government-approved entities, such as Indian Railways Finance Corporation (IRFC), Power Finance Corporation (PFC), Rural Electrification Corporation (REC) and (HUDCO) Housing and Urban Development Corporation
The primary purpose is to defer the tax liability on long-term capital gains by investing the proceeds from the sale of capital assets (land, building or both) in these bonds. This allows taxpayers to save on capital gains tax.
Founded in 1986, RR Financial is a comprehensive financial services group that provides an extensive range of financial products and services. Catering to corporate entities, institutions, high-net worth individuals, and retail investors, RR Financial offers a diverse portfolio to meet the unique needs of its clients. With a strong presence in the industry, RR Financial strives to deliver exceptional financial solutions and establish long-term partnerships with its customers.
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