Do bonds which mature after 5 years under Section 54EC are taxable or exempt?
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Quick Summary
This discussion clarifies the tax treatment of bonds under Section 54EC that mature after a five-year period. It addresses whether the principal amount is taxable or exempt, and also touches upon the taxability of interest, which is typically taxed on an accrual basis annually. The focus is on understanding the specific exemptions available for infrastructure bonds under this section.