Capital Gain Bonds (54EC Bonds)
Currently available 54EC Bonds
| Name of Issuer | Interest Rate | Tenure | Credit Rating | Minimum Investment | Maximum Investment | Term Sheet | Information Memorandum |
|---|---|---|---|---|---|---|---|
| PFC Ltd. | 5.25% | 5 Years | AAA by CRISIL, CARE & ICRA | Rs.20,000 (2 bonds) | Rs.50,00,000 (500 bonds) | Download | Download |
| IRFC Ltd. | 5.25% | 5 Years | AAA by CRISIL, CARE & ICRA | Rs.20,000 (2 bonds) | Rs.50,00,000 (500 bonds) | Download | Download |
| REC Ltd. | 5.25% | 5 Years | AAA by CRISIL, CARE & ICRA | Rs.20,000 (2 bonds) | Rs.50,00,000 (500 bonds) | Download | Download |
Please use the links available below to apply online or to download the required form & details
| _ |
|---|
| Name of Issuer |
| PFC Ltd. |
| IRFC Ltd. |
| REC Ltd. |
| Apply Online |
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| Online Investment Link |
| Click here to Apply |
| Click here to Apply |
| Click here to Apply |
| Apply Offline | ||
|---|---|---|
| Application Form Download Link | Collection Centres for Application Forms | Bank Details for Payment via RTGS |
| Download | Download | Download |
| Download | Download | Download |
| Download | Download | Download |
| _ |
|---|
| Check Application Status |
| Click here to Check |
| Click here to Check |
| Click here to Check |
About Capital Gain Bonds
- The simplest ways to save long term capital gains tax generated from sale of land or property.
- Tax deduction is available under Section 54EC of Income Tax Act.
- No exemption available on short term capital gains.
- Maximum limit: Rs.50 Lakhs; Minimum investment: Rs.20,000
- Bond tenure: 5 years; Interest Rate: 5.25% p.a. payable annually
- Investment in 54EC Bonds is to be done within 6 months of transfer of asset
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Eligible Bonds under 54EC are issued by the following PSUs:
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▪ Rural Electrification Corporation Ltd. (REC Ltd.)
▪ Power Finance Corporation Ltd. (PFC Ltd.)
▪ Indian Railways Finance Corporation Ltd. (IRFC Ltd.) - No refunds are entertained once the monies are credited to the issuer's bank account.
Key Features
Secured and Safe :
Bonds are issued by Public Sector Units companies with majority ownership by Govt. of India. Bonds are rated AAA by CRISIL, CARE & ICRA.
Interest Rate :
Payable annually @ 5.25% p.a. There is no TDS applicable on interest payable. However, TDS shall be deducted u/s 195 for Non Resident Individuals as per applicable law.
Maturity :
W.e.f. from April 2018, these bonds have a lock-in of 5 years from date of investment. These bonds cannot be transferred.
Investment Amount :
The minimum no. of bonds required for investment is 2 bonds having a face value of Rs.10,000. The maximum investment is Rs.50 Lakhs (500 Bonds).
Key Benefits
Tax Savings
Help to save LTCG tax that is otherwise payable on transfer/sale of long term capital assets like land or property
Security
Issued by Govt. of India owned PSU’s with highest credit ratings
Savings & Earnings
Come with a dual advantage:
▪ Save LTCG tax
▪ Earn interest @ 5.25% p.a. for 5 years. No TDS applicable on interest payable
User Flexibility
Can be held in physical or demat mode as per the preference of the customer.
Eligible Investor Categories
| Individuals | HUFs | Banks | Provident Funds |
| Companies | Mutual Fund | Body Corporates | Financial Institutions |
| Partnership Firms | FIIs | Superannuation Funds | Gratuity Funds |
Process to Invest
For a detailed explanation on the process to invest, please click the following link. Process to Invest