under section 54 EC
Capital Gains Bonds
Capital Gains Bonds (under Section 54EC) are investment options in India that allow taxpayers to defer capital gains tax on the sale of certain assets.
Key points include
01
Purpose
Section 54EC of the Income Tax Act permits individuals to invest capital gains from the sale of property into specific bonds, helping to save on tax.
02
Eligible Bonds
Investments must be made in bonds issued by the National Highways Authority of India (NHAI) or Rural Electrification Corporation (REC).
03
Tenure
These bonds have a lock-in period of 5 years.
04
Investment Limit
You can invest a maximum of ₹50 lakhs in these bonds to claim exemption on long-term capital gains.
05
Tax Benefit
By investing in these bonds, taxpayers can defer the payment of capital gains tax on the amount invested.