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 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:

  • 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 non-repatriation basis.
  • The issue is available on-tap.