PFC Bond 54EC

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Assistant
1095 Points Posted on 03 January 2023

I have invested in PFC Bond under Section 54EC of Capital Gain Exemption in Sept 2022. Now I want to withdraw the same. Can I Do that and What is Procedure? 

I'm aware that my Capital Gain Exempted will be taxed accordingly.

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On 03 January 2023 at 12:12 Report
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Quick Summary
This discussion concerns the early withdrawal of a PFC Bond invested under Section 54EC for capital gains exemption. While the investor wishes to redeem the bond before maturity, PFC has stated that redemption before the 5-year maturity date is not possible unless directed by the Income Tax Officer (ITO). The procedure would involve obtaining a No Objection Certificate (NOC) from the jurisdictional ITO, potentially after paying the Long Term Capital Gains (LTCG) tax, which would then allow for bond surrender.

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SEO Sai Gr. Hosp.
212535 Points Posted on 03 January 2023

Get NOC from your jurisdictional ITO, by paying LTCG tax as per his advice. Based on NOC the bonds can be surrender back.

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On 03 January 2023 at 12:29
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Assistant
1095 Points Posted on 03 January 2023

Thank you sir....

Can you provide me reference of relevant section or Provisions on the basis of which I can approach concerned AO.

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On 03 January 2023 at 13:41
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SEO Sai Gr. Hosp.
212535 Points Posted on 03 January 2023

Check the term & conditions on the back of the bond certificate...

Or contact PFC bond helpline...

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On 03 January 2023 at 14:21
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Assistant
1095 Points Posted on 04 January 2023

Sir, received this communication from PFC.

Dear sir

 

As per 54EC act, redemption before maturity date is not possible.  It is requested to hold the bonds till maturity.

 

54EC Investorcell

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On 04 January 2023 at 10:36
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SEO Sai Gr. Hosp.
212535 Points Posted on 04 January 2023

PFC has no right to mature the bond before 5 years, unless ITO directs it to do the same. That is why I, initially stated to get permission from Jurisdictional ITO.

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On 04 January 2023 at 13:14

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