How to Buy Capital Gain Bonds Online or Offline? | Allotment Status |
Investment in Capital Gain Bonds in India
LTCG i.e. Long-term capital gain is the gain that is derived out of a sale of an asset (Property or Building or Jewellery or Share) that has been held for more than 2 years.
You can invest the gain in certain specified capital gain bonds to claim tax exemption within six months of the date of sale of the asset.
Capital gains bonds also known as 54EC bonds are one of the perfect ways to save LTCG tax arising out of the sale of a capital asset.
The maximum limit for investing in bonds is INR 50,00,000.
Before we discuss “How to buy capital gain bonds online“, let us briefly touch upon the features of bonds.
Also Read List of Government Bonds in India – Short-Term and Long-Term Bonds
| Issue Details | On-going |
| Tenure | 5 years |
| Rate of Interest | 5.00% p.a. payable annually |
| Taxation | Interest is taxable. However, no TDS is deducted |
| Redemption | Automatic Redemption after 5 Years |
| Rating | AAA rated |
| Mode of Holding | Physical or Demat |
| Min Investment | Rs. 10,000 |
| Max Investment | Rs. 50,00,000 Lacs |
Also Read RBI RDG Account – Buy & Sell G-Secs, Bonds, T-bills, and State Development Loans
These bonds are issued by the following companies:
- Indian Railways Finance Corporation (IRFC)
- Rural Electrification Corporation (REC)
- Power Finance Corporation (PFC)
- National Highways Authority of India (NHAI)
| Issuer Name | Interest Rate(% p.a.) | Payment Date of Interest rate | Application Form |
| REC | 5.00 | 30th June every year | Download Form |
| IRFC | 5.00 | 15th October every year | Download Form |
| PFC | 5.00 | 31st July every year | Download Form |
| NHAI | 5.00 | 01st April every year | Download Form |
Also Read SBI Capital Gain Bonds | 54EC Bonds | Features | Interest Rate 2022 | How to Buy SBI Online?
How to Buy Capital Gain Bonds Online?
Time needed: 5 minutes
Follow the steps given below for applying for bonds online.
- Issuer Name
You could invest online in IRFC, REC & PFC Capital Gain Bonds using the
below link. However, NHAI is unavailable through SBICap securities.
1. IRFC
2. REC
3. PFC
Also Read NHAI Capital Gain Bonds – How to Buy NHAI Bonds Online? - Application Form Online
Click on any of the above link, read the instructions and Click on ‘Fill Application Form Online
- Terms and Conditions
Read the Disclaimer and click on ‘Agree’.
- Demat or Physical mode
Fill in all the required details and click on ‘Submit’.
You could select to opt between Demat and Physical mode. However, in case you wish to hold bonds in Demat form, select the depository NSDL / CDSL and enter your Demat account details. - Print and Sign
Upon successful submission of the application form in Step 4, a unique application would be assigned to
you.
Click to download the application form, take a print and sign the same. Now, Click on ‘Back to
page’. - Upload the Form
Click on the Upload Application tab
- OTP Verification
Enter your application number, email id, and mobile number to generate OTP. ‘Validate’ the OTP
and upload duly signed application form, Id proof, and Address Proof and click on proceed to payment. - Payment Process
Make the online payment through debit card / net banking to finally complete the transaction. The
effective date of investment would be the date of credit of funds in the issuer’s bank account.
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| What is the difference between Bond and Debenture? | SGB vs FD |
| RBI Bonds 2021 vs Tax Saving Fixed Deposits vs SGBs |
Allotment Status
The investor could check the status of the application from the below link. Usually, it takes 15-20 working days for the status to get updated in the below links.
| Rural Electrification Corporation Limited (REC) | |
| Indian Railways Finance Corporation (IRFC) | |
| Power Finance Corporation Limited (PFC) |
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