Issue Opening Date: April 1, 2022, Issue Closing Date: March 31, 2023
Bond | RECL | PFC | IRFC |
| Coupon/Interest rate/Yield | 5.00% annually | 5.00% annually | 5.00% annually |
| Rating | AAA / Stable (CRISIL) | AAA Stable (CRISIL/ICRA/CARE) | AAA Stable (CRISIL/ICRA/CARE) |
| Tax Status | Taxable | Taxable | Taxable |
| Tax Benefit | SEC 54 EC | SEC 54 EC | SEC 54 EC |
| Minimum (Rs.) | 20,000 | 20,000 | 20,000 |
| Maximum (Rs.) | 50 Lakhs in a Financial Year across RECL | 50 Lakhs in a Financial Year across all the issuers of these bonds | 50 Lakhs in a Financial Year across IRFC, PFC, RECL |
| Tenor | 5 Years | 5 Years | 5 Years |
| Interest Date | 30th June | 31st July | 15th October 2022 |
| Put/Call/Premature Encashment | Bullet repayment at the time of Maturity | Bullet repayment at the time of Maturity | Bullet repayment at the time of Maturity |
| Mode Of Interest | Annual | Annual | Annual |
- Get tax exemption on capital gain
- Maximum investment limit of up to Rs. 50 Lakhs in a Financial Year across the two available Bonds
- 5.00% interest per annum
- 100% risk free payment
The eligible bonds are:
- RECL (Rural Electrification Corporation Ltd)
- IRFC (Indian Railway Finance Corporation Ltd)
- PFCL (Power Finance Corporation Limited)
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 5 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or advance can be taken on security of such bond within 5 years from date of acquisition else, the benefit would be withdrawn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.