How do I invest in 54EC bonds?

How to invest in 54 EC capital gain tax exemption bonds online in…

1. Our Answer: 54EC bonds are specifically meant for investors earning long-term capital gains.
2. Investment via broker.
3. Click the “Fill a New Form online” button for the bond issuer you prefer.
4. Click the “upload Application/KYC documents” button.

How can I buy 54 EC bonds?

You can apply through your broker if you are interested in investing in 54EC bonds. If you want to purchase, you must do it within 6 months of transferring the asset. The minimum amount to invest is Rs 10,000 and maximum Rs 50 lakhs.

Is rec bond interest taxable?

The Interest @ 5.75% is payable annually by both NHAI as well as REC. It should be noted that the interest is not tax free and tax on interest would be liable to be paid as per the income tax slabs of the taxpayer. Thus, only the amount invested is exempted from Capital Gains Tax.

Which of the following bonds are also known as Section 54EC bonds?

capital gains exemption bonds
If you have sold a house property, land or building recently, you can avail of tax exemption on the resultant profit or capital gains by investing in 54EC bonds, which are also known as capital gains exemption bonds. The exemption is available under Section 54EC of the Income-tax Act.

What is the lock in period for capital gain bonds?

To avail the tax-exemption the investment must be made within 6 months of the date of sale of immovable property. Such investment can be redeemed only after 5 years. Before april 2018 the bonds could be redeemed within 3 years.

Which bond is better NHAI or REC?

REC bonds score a bit higher than NHAI bonds. Because on maturity i.e., after 5 years, NHAI bondholders have to apply for surrender of bonds only then the maturity amount is redeemed and paid by cheque or ECS. In the case of REC bonds, it will be automatically redeemed and paid by cheque or ECS.

Are 54EC bonds safe?

Safe and Secure: 54EC bonds are AAA rated. Interest: Interest on 54EC bonds is taxable. No TDS is deducted on interest from 54EC bonds and wealth tax is exempted. Tenure: 54EC bonds come with a lock-in period of 5 years (effective from April 2018) and are non-transferable.

Which capital gain bonds is best?

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.

Are capital gain bonds safe?

54EC bonds are popular investment instruments as investing in 54EC bonds allows investors to claim tax deductions on long-term capital gains. Safe and Secure: 54EC bonds are AAA rated. Interest: Interest on 54EC bonds is taxable. No TDS is deducted on interest from 54EC bonds and wealth tax is exempted.

Can I buy capital gain bonds after 6 months?

The ITAT while upholding the order passed by CIT(A) ruled that the investment in eligible bonds is required to be made by the assessee within a period of six months from the date of transfer of the long-term capital asset in order to claim the exemption on account of long-term capital gain.

Which capital gain bond is best?

What are 54EC bonds and what do they do?

What are 54EC Bonds 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.

Do you have to pay capital gains on 54EC bonds?

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.

How is interest earned from section 54EC taxed?

The interest rate offered by bonds specified under Section 54EC is 6% per year. How is the interest earned from these bonds taxed? Interest earned from these bonds is not free from tax. Any interest earned by the assessee on these bonds will be taxed in full. Can an assessee claim tax deductions on capital gains of more than Rs 50 lakhs? No.

Who is eligible for 54 EC bonds in India?

REC (Rural Electrification Corporation), NHAI (National Highways Authority of India), IRFC (Indian Railway Finance Corporation) & PFC (Power Finance Corporation Ltd) are the bonds eligible under Section 54 EC. What is the mode of application? You can apply for the 54 EC bonds offline with physical forms. What are the modes of payment?