Capital gains bonds are issued by specified institutions and tax benefits are available under Section 54EC of the Income Tax Act.
If the investor sells a property i.e. house or real estate, after three years time period the profit earned attracts long-term capital gains tax at a rate of 20%(after indexation). The investor can choose to get exemption from this long term capital gain tax in 2 ways: i.e. either by investing the amount in buying or constructing a new house property within 2/3 years of selling the house AND/OR investing in Capital Gain Bonds

 

 

We offer Capital Gains Bond under Section 54EC of the Income Tax Act, 1961. These bonds are being issued as 'Long term specified assets within the meaning of Explanation (b) to sub-section (3) of Section 54-EC of the Income Tax Act, 1961. Those desirous of availing exemption from capital gains tax under Section 54 EC may invest in these bonds. Capital gains arising from the transfer of Long-term capital assets can be invested in these bonds within a period of six months from the date of transfer of the asset for getting exemption from the capital gains tax. Such Bonds are issued by SIDB, NHB, NHAI, and REC.

 

 

Key Features

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• Minimum investment of Rs10,000 and in multiples of Rs10,000 thereafter

• Structure-I Tenure is 3 years. Interest Payment: Annual or Cumulative

• Structure-II Tenure of Five years with Put or Call option at the end of 3 years

• Structure-III Tenure of Seven years with Put or Call option at the end of 5 years

• Interest Payment: Semi-Annual, Annual or Cumulative

• Lock-in-period of 3 years for all the structures

• No TDS on Interest payable for Resident Investors

• 'CARE AAA' rating from CARE

• Half-yearly interest payable on 1 June and 1 December each year

• Annual Interest payable on 1 June every year

• Rate of Interest: Due to frequent change in the rate of interest, investors are requested to check the same before investing

• NRIs, OCBs, or FIIs are eligible to invest on a non-repatriation basis

• The issue is available on-tap

• Registrars of the issue are Datamatics Financial Software and Services Ltd.