CAPITAL GAIN BOND
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Capital Gain Bond

54EC bonds, commonly referred to as Capital Gains Bonds, are one of the ways to save long-term capital gain tax. 54EC bonds are specifically meant for any person (individuals, HUFs, partnership firms, companies etc.). You can avail exemption in respect of long-term capital gains arising from the sale of residential property if the capital gain is invested in the Capital Gain Bonds.

Link Name
Eligibility Investment Limit Maturity Interest Rate Tax treatment
Resident Individuals (including Joint
Holdings) and Hindu Undivided Families
(HUF). NRIs are not eligible to invest		 The minimum  investment is 1 bond amounting
to Rs. 10,000 and the maximum investment is 500
bonds amounting to Rs 50 lakhs in a financial year.		 A lock-in period of 5
years and are non-transferable		 5.25% p.a Interest on 54EC bonds is
taxable. The principle is tax-free
on maturity.