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Save long-term capital gains tax on profits realized from the sale of land or buildings by investing in AAA-rated 54EC Capital Gain Bonds. Available in both Demat and Physical form.
Mode of Holding
Demat & Physical Form
Capital Gain Bonds can be bought easily in both Demat and Physical Certificate forms.
Tax Exemption
Section 54EC Tax Saver
Exemption is claimed only for profits from property sales comprising land & buildings (residential & commercial).
Rate of Interest
5.25% p.a.
Interest rate payable annually with assured returns backed by PSU issuers.
Investment Timeframe
Within 6 Months
Investment should be made within six (6) months from the date of capital asset (property) sale.
Lock-in Period
5 Years Lock-in
Bonds have a lock-in of 5 years from investment date and automatically redeem at par at maturity.
Investment Limits
₹20,000 to ₹50 Lacs
Minimum investment INR 20,000 | Maximum limit of INR 50 Lacs in a financial year.
Section 54EC Rules & Tax Exemption Rules
Capital Gain Bonds offer an official, Government-approved mechanism under Section 54EC of the Income Tax Act to exempt long-term capital gains tax.
Exemption Scope & Timelines
- •Qualifying Asset Sale: Exemption is claimed only for profits arising from the sale of long-term real estate assets (land & buildings, both residential & commercial).
- •Strict 6-Month Window: Investment must be completed within six (6) months from the date of property transfer/sale.
- •Flexible Demat & Physical Holding: Investors can choose to hold these bonds in either Demat account or Physical Certificate form.
Limits & Interest Mechanics
- •Interest Yield: Currently offers 5.25% p.a. interest payable annually directly to your bank account.
- •5-Year Lock-in: Lock-in of 5 years from investment date; automatically redeemed at par at maturity.
- •Investment Limits: Minimum investment of INR 20,000 up to a maximum cap of INR 50 Lacs per financial year.
Government-Backed PSU Issuers
Section 54EC Capital Gain Bonds are issued by premier public sector undertakings (PSUs) ensuring highest safety.
AAA Rated (Sovereign Quality)
AAA Rated (Sovereign Quality)
AAA Rated (Government Body)
AAA Rated (Indian Railways)
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