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CAPITAL GAIN BONDS
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Demat Accounts – National Securities Depository Services Ltd
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National Pension Schemes – Government of India
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Mutual Fund – Bombay Stock Exchange – Star Mutual Fund
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Category I - Registrar and Transfer Agents
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Equity SME Segment - Trading on Bombay Stock Exchange
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F&O & Currency – National Stock Exchange
Under
Section 54 EC of Income Tax, 1961 an investor need not pay any tax on
any long-term capital gains arising on sale of any asset, if the amounts
of capital gains are invested in certain specified bonds. Rural
Electrification Corporation Limited (REC) & National Highways
Authority of India (NHAI) are permitted to issue capital gains bonds
under Section 54 EC.
Some key features of Section 54 EC bonds are:
- AAA rated
- Interest is taxable although no TDS is deducted
- Lock-in of 3 years and non- transferable
- Minimum investment-1 Bond amounting to ` 10,000/- and maximum investment-500 Bonds amounting to ` 50 lakhs in a financial year
- Rate of Interest 5.25% p.a. payable annually
- Bonds can be held in Demat /Physical Form
- Facility of Payment of Interest and Redemption through NECS
- The Bonds will automatically redeem after expiry of three years