Capital Gain Bonds (54EC)
Invest in 54EC Capital Gain Bonds
Save tax on long-term capital gains from property or other assets
At ANUJ KRISHAN AGARWAL, we help you leverage tax-saving options like Section 54EC Capital Gain Bonds to reduce tax liability from long-term capital gains. These bonds are issued by government-backed institutions and are a safe and efficient way to plan your finances after asset sales.
What are 54EC Bonds?
54EC Bonds are special fixed-income instruments that offer exemption from long-term capital gains tax under Section 54EC of the Income Tax Act. If you sell a long-term capital asset like land, property, or building, and invest the capital gain in these bonds within 6 months, you can avoid paying tax on those gains (up to ₹50 lakhs).
Key Features of 54EC Bonds
Tax Exemption
Exempt up to ₹50 lakhs of long-term capital gains if invested within 6 months.
Lock-in Period
5 years lock-in period. Premature withdrawal is not permitted.
Interest Rate
Currently offers ~5% annual interest, paid semi-annually.
Safe Investment
Issued by government entities like REC, NHAI, PFC — low credit risk.
Non-transferable
Cannot be sold or pledged during the lock-in period.
Eligible Issuers
- Rural Electrification Corporation (REC)
- National Highways Authority of India (NHAI)
- Power Finance Corporation (PFC)
- Indian Railways Finance Corporation (IRFC)
Who Should Invest?
- ✔ Individuals selling land, building, or real estate
- ✔ Looking for safe, tax-saving options with government backing
- ✔ Not seeking liquidity during the 5-year period
Don’t let your capital gains be taxed away. Invest smartly in 54EC Bonds and protect your profits.
Talk to Our AdvisorANUJ KRISHAN AGARWAL is an AMFI Registered Mutual Fund Distributor.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy distributable surplus.
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