Sec 54ec

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Supriya

Supriya (Querist)
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02 November 2013 sec 54 EC how to save capital gain arising on the inherited property

CA Pallav Singhania

CA Pallav Singhania (Expert)
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02 November 2013 1. Investment into these bonds save long term capital gains.

2. It is locked in for 3 years.

3. Demat account is not compulsory to invest in these bonds.

4. Currently REC and NHAI issue such bonds.

5. Rate of interest from these bonds are 6% pa and paid out every year.

6. TDS on the interest payable will not be deducted.

7. Remember the yearly interest earned is taxable under the head of income from other source.

8. The maximum cap for the investment is Rs. 50 lacs.

9. The Bonds are non-transferable, non-negotiable and cannot be offered as a security for any loan or advance. Most of the bank branches sell these bonds.

For the respective bond application forms you can download here.. Application Form: REC – 54EC Capital Gain Bonds and NHAI – 54EC Capital Gain Bonds You can also talk to your local bank branch for the availability of these bonds or alternatively you can find the list of mobilisors & collecting bank branches in REC website.

The prospect and application form for NHAI – 54EC Capital Gain Bonds are available in all the Branches of Union Bank of India/IDBI Bank & Selected branches of Axis Bank, Canara Bank,HDFC Bank,ICICI Bank, Punjab National Bank,State Bank of India & Syndicate Bank.

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