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 DetailsOn-going
Tenure5 years
Rate of Interest5.00% p.a. payable annually
TaxationInterest is taxable. However, no TDS is deducted
RedemptionAutomatic Redemption after 5 Years
RatingAAA rated
Mode of HoldingPhysical or Demat
Min InvestmentRs. 10,000
Max InvestmentRs. 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:

  1. Indian Railways Finance Corporation (IRFC)
  2. Rural Electrification Corporation (REC)
  3. Power Finance Corporation (PFC)
  4. National Highways Authority of India (NHAI)
Issuer NameInterest Rate(% p.a.)Payment Date of Interest rateApplication Form
REC5.0030th June every yearDownload Form
IRFC5.0015th October every yearDownload Form
PFC5.0031st July every yearDownload Form
NHAI5.0001st April every yearDownload 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?

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Time needed: 5 minutes.

Follow the steps given below for applying for bonds online.

  1. 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
    How to Buy Capital Gain Bonds Online
    Also Read NHAI Capital Gain Bonds – How to Buy NHAI Bonds Online?

  2. Application Form Online

    Click on any of the above link, read the instructions and Click on ‘Fill Application Form Online
    How to Buy Capital Gain Bonds

  3. Terms and Conditions

    Read the Disclaimer and click on ‘Agree’.
    54EC Bonds SBI

  4. 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.
    Capital Gain Bonds Application form

  5. 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’.
    Download The Form

  6. Upload the Form

    Click on the Upload Application tab
    KYC document

  7. 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.
    Upload Document 54EC

  8. 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.

Related Links
What is the difference between Bond and Equity?NPS vs PPF: NPS vs APY
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)

Also Read Sovereign Gold Bond : Best Returns on Gold Investment

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