NHAI Bonds

Interest on NHAI capital gains bond is taxable.

But  NHAI issued Tax Free Bonds for subscripttion in February 2016, interest on the same was tax free.

If you earned any Long Term capital gain by sale of any immovable property, and wish to save the capital gain u/s. 54EC of IT act, you have to invest it in capital gains bonds, and interest paid over it at 5.25% PA is taxable.

Sometimes, these companies like NTPC (National Thermal Power Corp), PFC (Power Finance Corporation), REC, NHAI, IRFC, IRDEA etc issue Tax Free Bond, in which the capital gains benefit is not available; but as name suggest the interest earned on it is tax-free.