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|
|REC Ltd.||5.25%||5 Years||AAA by CRISIL, CARE & ICRA||Rs.20,000 (2 bonds)||Rs.50,00,000 (500 bonds)||Download||Download|
|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|
Please use the links available below to apply online or to download the required form & details
|Name of Issuer|
|Application Form Download Link||Collection Centres for Application Forms||Bank Details for Payment via RTGS|
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
Eligible Bonds under 54EC are issued by the following PSUs:
▪ 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.
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.
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).
Eligible Investor Categories
|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