And an additional deduction allowed up to a limit of Rs.50,000 under section 80D. The interest rate and policy with respect of 54EC bonds are subject to change from time to time, depending on government regulations and changing economic conditions. Investors are advised to keep themselves informed through the Notices periodically made available by PFC, IRFC, and REC. You can apply through your broker if you are interested in investing in 54EC bonds.
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- NRI Investment in Bonds is a very popular and rewarding opportunity.
- Our experts suggest the best funds and you can get high returns by investing directly or through SIP.
- We tell you how to save on taxes on any long-term capital gain.
- In the Budget 2024 FM Nirmala Sitharaman has proposed changes in the tax rate on short-term capital gains from 15% to 20%.
- We all have Rs.150,000 covered under section 80C in the form of PF or FDs or like.
Investors can compare them with FDs, PPF, and Debt Mutual Funds for returns. Tax implications include exemptions on long-term gains and taxable interest income. These bonds are suitable for tax-saving and conservative investors seeking safety.
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Please note that by submitting the above mentioned details, you are authorizing us to Call/SMS you even though you may be registered under DND. We shall Call/SMS you for a period of 12 months.Brokerage will not exceed SEBI prescribed limits Disclaimer Privacy Policy Any Grievances related the aforesaid brokerage scheme will not be entertained on exchange platform. Yes, the exemption under Section 54EC can be claimed multiple times related to the same property, subject to the overall limit of Rs.50 lakhs per financial year. As shown in example, assessee has tried to take double benefit of section 54EC by investing the amount in two different financial years but within six month after the date of transfer. But this planning is nullified by the Second Proviso u/s 54EC.
If you have received capital gain from selling a property, you can invest in these bonds to avoid paying capital gain tax. Selling your capital assets for a generous amount of profit is surely a moment of joy, but it also comes with capital gains taxes. However, there are various ways to avoid this tax or minimize your capital gains tax liability. One such way is to invest your capital gains in capital gains bonds specified under section 54EC of the Income Tax Act. This guide will cover all that you need to know about capital gains bonds under section 54EC of the Income Tax Act. 54EC bonds are specifically meant for investors earning long-term capital gains and would like to get apb meaning exemption on these gains.
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Schedule a call with an investment expert to get complete help regarding investment in 54EC Bonds in India.
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Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing. Any individuals, including Non-Resident Indians, and HUFs can apply for these bonds to get capital gains tax exemption. However, you need to buy these bonds within six months of selling property. Since these bonds are used to receive exemption on capital gains from sale of an asset held for a long period, you can invest in 54EC bonds if you have received capital gain from selling a property. In case if the capital gain bonds are converted into cash before the period of maturity, then the amount so invested on which tax exemption was claimed, shall be taxable as long-term capital gain in the year of conversion.
In addition, capital bonds offer dual benefit of wealth creation and tax saving. If you have any doubts or queries and want specialized advice from experts at SBNRI, contact us using the button below. With just over a few months left in the current tax year, many of us would already be doing year end tax planning and sussing out options to invest to either gain a tax deduction or tax exemption. We all have Rs.150,000 covered under section 80C in the form of PF or FDs or like.
