Capital Gain Bonds

We offer Capital Gains Bond under Section 54EC of the Income Tax Act, 1961. Those desirous of availing exemption from capital gains tax under Section 54 EC may invest in these bonds.

Capital gains arising from transfer of Long-term capital assets can be invested in these bonds within a period of six months from the date of transfer of the asset for getting exemption from the capital gains tax. Such Bonds are issued by SIDBI, NHB, NHAI and REC.

Key Features:

Minimum investment of Rs10,000 and in multiples of Rs10,000 thereafter
Interest Payment: Semi Annual, Annual or Cumulative
Lock-in-period of 5 years for all the structures
No TDS on Interest payable for Resident Investors
Rating from CARE
Rate of Interest: Due to frequent change in the rate of interest, investors are requested to check the same before investing
NRIs, OCBs or FIIs are eligible to invest on non-repatriation basis

Capital gains tax can significantly impact the financial outcome of selling a long-term asset, such as property or stocks. However, the Indian Income Tax Act provides an effective way to reduce or defer this tax through Section 54EC Bonds.. These bonds not only provide an attractive investment avenue but also allow taxpayers to save on capital gains tax. By investing in these bonds, taxpayers can defer their tax liabilities, making it a prudent choice for those looking to manage their capital gains efficiently.

Bond	REC	PFC	IRFC	HUDCO
Coupon/Interest rate/Yield	5.25% annually	5.25% annually	5.25% annually	5.25% annually
Rating	AAA / Stable  (CRISIL/ICRA/CARE/FITCH)	AAA Stable (CRISIL/ICRA/CARE)	AAA Stable (CRISIL/ICRA/CARE)	AAA Stable (ICRA/CARE/IRRPL)
Tax Status	Taxable	Taxable	Taxable	Taxable
Tax Benefit	SEC 54 EC	SEC 54 EC	SEC 54 EC	SEC 54 EC
Minimum (₹)	20,000	20,000	20,000	20,000
Maximum (₹)	50 lakh in a Financial Year across all the issuers of these bonds	50 lakh in a Financial Year across all the issuers of these bonds	50 lakh in a Financial Year across all the issuers of these bonds	50 lakh in a Financial Year across all the issuers of these bonds
Tenor	5 Years	5 Years	5 Years	5 Years
Interest Date	30th June	31st July	15th October	30th April
Put/Call/Premature Encashment	Bullet repayment at the time of Maturity	Bullet repayment at the time of Maturity	Bullet repayment at the time of Maturity	Bullet repayment at the time of Maturity
Mode Of Interest	Annual	Annual	Annual	Annual

Save Tax On Capital Gains

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Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

AMFI Registered Mutual Fund Distributor | ARN- 26772 | Date of initial Registration: 2004 | Current validity: 12 April 2027

Grievance Officer: B S Swami, Phone Number: 020-48611553, Email id: swami@suvidhafinancial.com