After the 5-year lock-in period, you can choose to either redeem the bond or continue holding it. Interest income is taxable after maturity.
Can these bonds be transferred or sold before maturity?
These bonds usually have a lock-in period, but some secondary markets may offer limited liquidity options.
Where can I buy 54 EC Capital Bonds?
You can purchase these bonds through designated banks and financial institutions or on government-approved platforms.
Can these bonds be used for saving taxes other than capital gains tax?
No, these bonds are specifically designed for deferring capital gains tax and do not provide other tax-saving benefits.
Are the interest rates on these bonds fixed or variable?
The interest rates on 54 EC Capital Bonds are typically fixed and may vary from one issuance to another.
How much can one invest in these bonds?
The maximum investment limit per financial year is subject to the capital gains made from the sale of the property, up to a certain ceiling (e.g., ₹ 50 lakhs)
What is the tax benefit of investing in these bonds?
Investing in 54 EC Capital Bonds allows you to defer the payment of capital gains tax, offering potential tax savings.
What is the lock-in period for 54 EC Capital Bonds?
Typically, these bonds have a lock-in period of 5 years, during which investors cannot redeem their investment.
Who can invest in these bonds?
Any individual or Hindu Undivided Family (HUF) who has made capital gains from selling property or land is eligible to invest in these bonds.
What are 54 EC Capital Bonds?
54 EC Capital Bonds are government-issued bonds that allow individuals to reinvest the proceeds from the sale of long-term capital assets and claim tax exemptions under Section 54EC of the Income Tax Act.