Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

PFC Bond 54EC

555 views

Save Share

Nishant

Assistant

670 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.

Replies (5)

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.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 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.

Nishant

Assistant

670 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.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 03 January 2023

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

Or contact PFC bond helpline...

Nishant

Assistant

670 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

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 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.