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How to avail capital gains tax exemption under section 54EC?
Does HDFC Bank provide capital gains bonds under section 54EC?
What are the eligible bonds under section 54EC of Income Tax Act?
What is a 54EC bond?
54EC Capital Gain Bonds are a type of financial instrument issued by specified institutions in India. These bonds provide a tax-saving option for those who have incurred long-term capital gains from the sale / transfer of long-term capital assets being land, building or both.
- Section 54EC
- Bonds Eligible For Exemption Under Section 54EC of The Income Tax Act
- Key Facts to Avail The LTCG Exemption by Investment in Capital Gain Bonds
- How to Calculate The Tax Exemption by Investment in Tax Saving Bonds
- How to Make Investment in 54EC Bonds
When a taxpayer sells long-term immovable property (land or building or both), they have the option to avail capital gain exemption under Section 54EC by investing in certain bonds. Section 54EC bonds, also known as Capital gain bonds are fixed income instruments which provide capital gains tax exemption under section 54EC to the investors. To be e...
Rural Electrification Corporation Limited or REC bonds,National Highway Authority of India or NHAI bonds,Power Finance Corporation Limited or PFC bonds,Indian Railway Finance Corporation Limited or IRFC bonds.To avail the tax exemption the investment must be made within 6 months of the date of sale of immovable property.Such investment can be redeemed only after 5 years. Before April 2018 the bonds could be redeemed within 3 years.The exemption on investment is allowed only against long term capital gains on sale of immovable property (i.e. sale of land or building or both).The exemption is available up to a maximum amount of Rs 50 lakhExample 1: Assuming that an immovable property is sold at Rs. 70 lakh after a long term period of 42 months from the date of acquisition. The indexed cost of acquisition is 46 lakh and indexed cost of improvement is Rs. 10 lakh. Calculate the capital gain that is taxable after claiming exemption in below two seperate cases: I. Rs. 14 lakh invested ...
These bonds are not listed on the stock exchange. Hence you can buy them by the issuer directly either in a demat form or a physical form. Let us understand how to invest in the above mentioned bonds: 1. Step 1: Download the respective bond Form from here – 1.1. REC bond 1.2. NHAI bond 1.3. PFC bond 1.4. IRFC bond 2. Step 2:Choose the‘ direct’ opti...
54EC bonds, or capital gains bonds, are one of the best way to save long-term capital gain tax. 54EC bonds are specifically meant for investors earning long-term capital gains and would like tax exemption on these gains.
54 EC Capital Gain Tax Exemption Bonds. ... आवेदन पत्र: आरईसी 54 ईसी पूंजीगत लाभ कर छूट ...
Apr 1, 2022 · HDFC Bank provides Capital Gains Bonds under Section 54EC of the Income Tax Act, 1961. Get tax exemption on capital gain. Apply Online.
Jun 18, 2024 · These bonds are named after Section 54EC of the Income Tax Act, 1961, it allows investors to save tax on long term capital gains, which comes from the sale and transfer of immovable assets like land and building, by investing the gains in these bonds. Key Features of 54EC Bonds.
Apr 25, 2024 · Explore Section 54EC and how it offers deductions on Long-Term Capital Gains (LTCG) through Capital Gain Bonds. Learn how to save on taxes while investing in these bonds for a secure financial future.
