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Jun 25, 2024 · Capital gain bonds are also known as 54EC bonds. Investment in such bonds reduces the long term gain tax liability. There are four types of 54EC bonds. i.e. REC bonds, PEC bonds, NHAI bonds and IRFC bonds.
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.
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.
Oct 26, 2020 · Provisions under section 54EC provide exemption capital gain arisen on transfer of Long Term Capital Assets (whether land or building or both) when the amount is invested in specified bonds. This article discusses provisions of Sec 54EC of the Income Tax Act.
Oct 10, 2020 · The provisions of section 54EC are explained herein below . 1. All categories of persons are eligible to avail exemption benefit under section 54EC of the Income Tax Act. 2. Section 54EC exemption is available only towards the capital gain arisen on account of transfer of long term capital asset (being land or building or both). 3.
Jun 18, 2024 · 54EC bonds are specific types of bonds issued by government-approved entities like the Power Finance Corporation Limited (PFC), Indian Railways Finance Corporation Limited (IRFC), and the Rural Electrification Corporation (REC).
Apr 25, 2024 · 54EC bonds allow taxpayers to claim tax exemption on long-term capital gains. Some of its key features are - 54EC bonds are safe and secure and AAA-rated. Interest on 54EC bonds is subject to tax. There is no TDS deduction on interest received from 54EC bonds, and wealth tax is exempted.
Jun 26, 2018 · The answer is NO. In simple words, only the profit earned by the individual on the sale of the property is taxable. Profit is the difference between the sale price and the cost of the asset. A sale of a residential house is a sale of a capital asset, and the profit gets taxed as a capital gain.
Aug 11, 2023 · Under Section 54EC of the Income Tax Act, a capital gains bond serves as a financial instrument that offers individuals a tax-saving advantage on their long-term capital gains. When an individual sells assets like land, buildings, or other capital properties, they are liable to pay taxes on the gains realized from the sale.
Feb 27, 2024 · Section 54EC is a capital gain exemption under the Income Tax Act to the taxpayer who is selling their long-term capital asset like land, building, or both. They can invest the capital gain amount into the specific bonds issued by the Govt. of India and can save the tax.
