Sec 54 EC - Capital Gains Bonds

Why choose this product?

  • Get tax exemption on capital gain
  • Maximum investment limit of up to Rs. 50 Lakhs in a Financial Year across the two available Bonds
  • 6% interest per annum
  • 100% risk free payment

Which bonds are eligible under the Section 54 EC?

The eligible bonds are:

  • RECL (Rural Electrification Corporation Ltd)
  • NHAI (National Highways Authority of India)

Contact Us

Contact Number
6160 6161

What’s the product all about?

"The new issue would close in March 2014"

Coupon/Interest rate/Yield 6% 6%
Rating AAA / Stable (CRISIL) AAA / Stable (CRISIL)
Tax Status Tax Status Taxable
Tax Benefit SEC 54 EC SEC 54 EC
Minimum (Rs.) 10,000 10,000
Maximum (Rs.) 50 Lakhs in a Financial Year across RECL & NHAI 50 Lakhs in a Financial Year across RECL & NHAI
Tenor 3 Years 3 Years
Interest Date 30th June 1st April
Put/Call/Premature Encashment Bullet repayment at the time of Maturity Bullet repayment at the time of Maturity
Mode Of Interest Annual Annual

Please contact the nearest branch for more details

What are the provisions of Section 54EC?

As per provisions of Income Tax Act, 1961, any long term capital gains arising from transfer of any capital asset would be exempt from tax under section 54EC of the Act if:

  • The entire capital gain realized is invested within 6 months of the date of transfer in eligible bonds
  • Such investment is held for 3 years
  • To avail of capital gain exemption, the bonds so acquired cannot be transferred or converted into money or any loan or advance can be taken on security of such bond within 3 years from date of acquisition else, the benefit would be withdrawn
  • If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempt from tax.

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