Capital Gain Bonds – Under section 54EC of income tax act, an investor need not pay tax on any Long-Term Capital Gains arising from sale of any capital assets. If the entire Capital Gain realized is invested within 6 Months of the date of sale, in eligible bonds. Currently, following are permitted to issue Capital Gain Bonds
Under Section 54EC:-
• Rural Electrification Corporation Limited (REC)
• National Highway Authority of India (NHAI)
• Power Finance Corporation Limited (PFC)
• Indian Railway Finance Corporation (IRFC)
Floating Rate Saving Bonds,2022 (Taxable)
Issued By RBI
Maturity Period - 7 Years
Rate Of Interset 7.15%*
*The Interest rate of the bond would be re-set half yearly starting with Jan 1st 2021 and therafter ervery July 1st and Jan 1st and will ne linked with the prervalling National Saving Cerfiticate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.
If you are looking for a risk-free investment with higher returns, RBI Floating Rate Savings Bonds, 2020 (Taxable) is an attractive investment option.
A person residing in India
- In his or her individual capacity, or
- In individual capacity on joint basis, or
- In individual capacity on anyone or survivor basis, or
- On behalf of a minor as father/mother/legal guardian
- A Hindu Undivided Family.
- Minimum investment of Rs.1,000
- No maximum limit on investment
- Floating rate of interest with a Half Yearly interest payout
- 7 years tenure of the bond from the date of issue with a special provision for premature redemption for Senior Citizens.