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Section 54 ec exemption

Tax planning 118 views 1 replies

Nikita

54 Points Joined April 2012

I want to know if we invest LTCG after Indexation from Sale of Immovable Property in NHAI Bonds, will the amount we receive on redemption of the bonds be subject to tax. If yes, slab rates apply for individual?

Also, the coupon receipt if less than the Basic Exemption Limit if there is no other income to the individual will become exempt?

Replies (1)

Jigar Shethiya

Manager in Audit & Taxation

77 Points Joined June 2013

Assuming you are investing for saving cap gains, the bonds have a lock in of 3/4/5 years depending on issuer. The interest on the bonds is taxable year on year, but no TDS is deducted on the interest. At the time of maturity after lock in , there is no tax incidence.