54EC bonds, or capital gains bonds, are one of the best way to save long-term capital gain tax. 54EC bonds are specifically meant for investors earning long-term capital gains and would like tax exemption on these gains. Tax deduction is available under section 54EC of the Income Tax Act. 54EC bonds do not allow any tax exemption on short-term capital gains tax. Invest in 54EC bonds to get benefits of tax deduction. The maximum limit for investing in 54EC bonds is Rs. 50,00,000. The eligible bonds under Section 54EC are REC (Rural Electrification Corporation Ltd), PFC (Power Finance Corporation Ltd) and IRFC (Indian Railways Finance Corporation Limited)
54EC bonds are popular investment instruments as investing in 54EC bonds allows investors to claim tax deductions on long-term capital gains. 54EC bonds also offer other features.
Individuals as well as members of HUF can make investments in 54EC bonds. You should invest in 54EC bonds within 6 months of transferring capital asset.
Take a look at the benefits of investing in 54EC bonds.
PFC has launched Series VI of PFC Capital Gain Bonds u/s 54EC of Income Tax Act 1961, w.e.f 1st April 2022.
IRFC has launched Series VI of Capital Gain Bonds u/s 54EC of Income Tax Act, 1961 on 1st April 2022. These Bond have tenor of 5 years and the Rate of Interest for
the bonds is 5% p.a. The issue of Series VI IRFC 54EC Bonds will remain open till 31st March 2023 or earlier at discretion of IRFC
REC has launched Series XVI of Capital Gain Bonds u/s 54EC of Income Tax Act, 1961 on 1st April 2022. These Bond have tenor of 5 years and the Rate of Interest for
the bonds is 5.00 p.a. The issue of Series XVI REC 54EC Bonds will remain open till 31st March 2023 or earlier at discretion of REC.