Capital Gain Bonds | Interest Rate | NHAI | REC | PFCL | IRFC | How to Buy Online? |

Investment in Capital Gain Bonds

Are you looking to sell your land or building, but are worried about paying taxes for gains? Then Capital Gain Bonds will best option for you.
A capital Gain Bond is a gain that is derived out of a sale of an asset that has been held for more than 2 years. Asset means Land or Building.
These Bonds are being issued as “Long term specified assets” within the meaning of subsection 54-EC. Therefore, also called 54-EC Bonds or Tax-Free Bonds.
54-EC Bonds are one of the perfect ways to save long-term capital gains tax arising out of the sale of a capital asset.
The tax deduction is available u/s 54 EC of the IT Act 1961.
Here’s a Quick Look about Capital Gain on Bonds.

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Capital Gain on Bonds

Gains arising from the transfer of a capital asset (Land or Building) are considered capital gains. Therefore, a tax requires to be paid on the income that is received. The tax that is paid is called capital gains tax.

Capital gains are of 2 types, Short-term capital gains (STCG) and Long-term capital gains (LTCG) depending on the period of holding.

You can reduce the liability of these taxes.
Invest in Capital Gain Bonds, also known as Tax-Free Bonds, to avail of tax deductions in the future.
Tax-Free Bonds are issued as per the provisions under section 54-EC of the Income Tax Act 1961.
These bonds don’t permit any tax exemption on short-term capital gains tax(STCG).

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Tax-Free Bonds Features

What are the bonds that fall in this bracket?
They are bonds proposed by Rural Electrification Corporation Ltd (REC), Power Finance Corporation Limited (PFCL), Indian Railways Finance Corporation Limited (IRFC), and National Highways Authority of India (NHAI), among others.

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Capital Gain Bonds NHAI

National Highways Authority of India (NHAI ) has launched Series XXI of Tax-Free Bonds under section 54EC of the IT Act, 1961.
The issue of Series XXI Capital Gain NHAI Bonds will remain open till 31st March 2021 or earlier at the discretion of NHAI.
Here’s a feature of Capital Gain Bonds NHAI.

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Capital Gain Bonds REC

Rural Electrification Corporation Ltd (REC) launched Series XIV of Tax-Free Bonds under section 54EC of IT Act, 1961 on 1st April 2020.
The issue of Series XIV Capital Gain REC Bonds will remain open till 31st March 2021 or earlier at the discretion of REC.

Capital Gain Bonds PFCL

Power Finance Corporation(PFCL) has launched Series IV of Tax-Free Bonds under section 54EC of IT Act, 1961.
These Bond have a tenor of 5 years and the Rate of Interest is 5% per annum.
The issue of Series IV Bonds will remain open till 31st March 2021 or earlier at the discretion of PFCL.

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Capital Gain Bonds IRFC

Indian Railways Finance Corporation Limited(IRFC) launched Series IV of Tax-Free Bonds IRFC under section 54EC of IT Act, 1961 on 1st April 2020.
These Bond have a tenor of 5 years and the Rate of Interest is 5% per annum.
The issue of Series IV Bonds will remain open till 31st March 2021 or earlier at the discretion of IRFC.

Capital Gain Bonds Interest Rate

How to Buy Capital Gain Bonds Online & Offline?

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Capital Gain Bonds in SBI Online

• Please click here for the application form for opening an account under the SBI CapGains Plus scheme.
• In case, You are not an SBI customer please open an account and then submit the application form for CapGains Plus.

Also Read SBI Capital Gain Bonds | 54EC Bonds | Features | Interest Rate 2022 | How to Buy SBI Online?

Application Forms

Premature Withdrawal of 54-EC Bonds

54-EC Bonds are non-transferable, non-negotiable and
You can not withdraw at any time before the expiry of 5 years from the date of its investment.