Oct 23, 20 lets see the salient features of 54ec bonds. Pay long term capital gains tax or buy sec 54ec nhairec. Limited rec, 54ec cgte bonds series xiv fy 202021, download, na. Amendment in section 54ec thetaxtalk invest in nhai rec. Application form must be filled in block letters in english. National highways authority of india 54ec capital gain bonds seriesxx highest credit rating i. Click here to know more about capital gain bonds in india. If you are planning to invest any longterm capital gains ltcg from sale of house property, land, building, jewellery etc. As per the provision of subsection 1 of section 54ec by the finance no. The appellant had made investment of 50 lacs,on 3 1122007 in rec bonds and 50 lacs on 2652008 in nhai bonds and claimed exemption of 100 lacs us 54ec of the act. Rec limited formerly rural electrification corporation limited is a navratna company under the administrative control of the ministry of power. Rec 54ec capital gains tax exemption bonds series xiv, invest here click here. Capital gains bond section 54ec hrp wealth creators. Know everything about 54ec bonds at karvy corporate.
Rec bonds to save long term capital gains tax us 54ec. To download the nhai application form, click hereclick here. Automatic redemption after 5 years without surrendering bonds certificate. Capital gain bonds is the best way to save long term capital gain from the any property type. As per the companys internal procedureprocess, the allotment of bonds will be done on the following lines. In order to download form, click on the links below. Apr 17, 2015 capital gain bonds issued under section 54ec by nhai or rec is one of the best ways of saving tax on longterm capital gains. Rural electrification corporation limited rec, a navratna central public sector enterprise under ministry of power, was incorporated on july 25, 1969 under the companies act 1956. Avail the opportunity to invest in 54ec bonds to gain tax deductions. Investment in rec and nhai bonds us 54ec has become more. Payment received from the investors, between 1st to 15th every month, the allotment will be done on 30th 31st of every month and bonds will be crediteddispatch within a. Bonds can be issued by companies, financial institutions or the government. To download the rec 54ec bond application form, click hereclick here.
Sections 54, 54b, 54d, 54ecrec and nhai bonds, 54ed, 54f and 54g are helping the sellers of the properties in reducing their tax liability. Lock money into 54ec bonds for 2 more years to escape ltcg tax exemption from ltcg tax are available if the gains are invested in the specified asset of the section within six month of the date of sale under section 54ec. Rec a listed public sector enterprise government of india with a. So you need to pay capital gain tax on 50% of the 70 lakhs, i. Provided further that the investment made by an assessee in the long. Pay long term capital gains tax or buy sec 54ec nhairec bonds. Jul 28, 2019 so you need to pay capital gain tax on 50% of the 70 lakhs, i. The investment in rec bonds was allowed by the ao as it was within the time limit of six months prescribed in section 54ec of the act, while the investment in nhai bonds which was made only on 26052008 was not allowed as according to the lower authorities the assessee is only entitled for exemption us 54ec upto rs. Download rec 54ec capital gains bonds application form year 201920 for tax saving bond with 5. Seriesxii 201819 tutorial video on how to fill 54ec cgte application form application form 54ec capital gain bonds series xiii. You can download various forms details pertaining to bonds as mentioned below. Rec capital gain bond application form 20202021 sanriya. If you have sold a house during the financial year 201718, which you have held for more than. Rec limited funds their business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings and provides financial assistance to the power sector in all segments i.
Apr 09, 20 rec has issued long term capital gains bond series ix, offering 6% per annum for fy 2014. Bajaj finance ltd fixed deposit form new, download here. Investment into these bonds save long term capital gains 2. If you sell the bonds before the end of 3 years, then the exemption granted under section 54ec will be withdrawn and you have to pay ltcg tax on the original capital gains amount. Shiv has just left a comment with a link to download the application form of the nhai tax free bonds. A blank space must be left between two or more parts of the name. Rural electrification corporation limited rec 54ec cgte bonds series xiv fy 202021. Core4, scope complex, 7, lodi road, new delhi110 003. You can invest in these for 3 years to save long term capital gains us 54ec on sale of residential property.
If you sell the bonds before the end of 3 years, then the exemption granted under section 54ec will be withdrawn and you have to pay ltcg tax on the original capital. Among all these section 54ec is a very popular way to reduce the burden of tax liability. Download rec 54ec capital gains bonds application form year 201920 for tax saving. Trading members of the exchange are hereby informed that, rural electrification corporation ltd.
Rec limited 54ec bonds application number formerly known as rural electrification corporation limited a navratna company cin. Arihant capital is official arranger of these both rec and nhai 54ec bonds. Capital gain bonds invest now in 54ec bonds at karvy value. Rec has issued long term capital gains bond series ix, offering 6% per annum for fy 2014. Debit card, issue highlights, information memorandum, download application, allotment status. Further, the lock in period is enhanced from 3 years to 5 years. Tax deduction is available under section 54ec of the income tax act. Capital gain bonds are safe, secure and offer a decent rate of interest. Welcome to the investor services for rec 54ec bonds series xiv rural electrification corporation limited rec, a listed navratna public sector enterprise under ministry of power, government of india, was incorporated on july 25,1969 under the companies act 1956.
Buy capital gain bonds online india download bond application. Those desirous of availing exemption from capital gains tax under section 54 ec may invest in these bonds. The investment in rec bonds was within time limit of 6 months prescribed in s. Please submit your application to the nearest branch for bidding. However, provision inserted under subsection 1 of section 54ec by the finance no. Just write the bank account number and sign in the application form to. Nhai 54ec capital gain bond form new, download here. Irfc capital gain bond, irfc 54ec capital gain bonds application form series. The exemption for capital gain bonds is available us 54ec what is a capital asset.
May 26, 2016 the appellant had made investment of 50 lacs,on 3 1122007 in rec bonds and 50 lacs on 2652008 in nhai bonds and claimed exemption of 100 lacs us 54ec of the act. Demat account is not compulsory to invest in these bonds 4. Please note that as per the sebi regulation, bidding placing order on exchange system is mandatory. National highways authority of india 54ec capital gain bonds seriesxx. Other long term capital assets are not eligible for exemption us 54ec. The lockin period of section 54ec capital gain bonds has increased from 3 years to 5 years. Redemption of bonds of rural electrification corporation ltd. Feb 15, 2017 trading members of the exchange are hereby informed that, rural electrification corporation ltd. Payment received from the investors, between 1st to 15th every month, the allotment will be done on 30th 31st of every month and bonds will be crediteddispatch within a weeks time, from the date of allotment.
Hdfc bank provides capital gains bonds under section 54ec of the income tax act, 1961. The capital gains 54ec bonds eligible for tax deductions can be issued only by rec rural electrification corporation ltd, pfc power finance corporation ltd and nhai national highways authority of india. By amending the meaning of long term specified assets in explanation to section 54ec. Here are some of the primary features of the 54ec bonds. Notice for change of registrar and transfer agent w. Rate of interest from these bonds are 6% pa and paid out every year 6. Bond refers to a security issued by a company, financial institution or government, which offers regular or fixed payment of interest in return for borrowed money for a certain period of time. Bonds issued by the government are considered the safest bonds. The bonds bought with the capital gains amount should be with the taxpayer for at least 3 years.
Capital gain bonds issued under section 54ec by nhai or rec is one of the best ways of saving tax on longterm capital gains. Download forms rural electrification corporation limited. Sep 14, 2017 the investment in rec bonds was allowed by the ao as it was within the time limit of six months prescribed in section 54ec of the act, while the investment in nhai bonds which was made only on 26052008 was not allowed as according to the lower authorities the assessee is only entitled for exemption us 54ec upto rs. According to section 54ec, any person individuals, hufs, partnership firms, companies etc. A bond is a debt instrument issued for the purpose of raising capital by borrowing. Bonds can be divided into different categories based on tax status, credit rating, issuer type and maturity. Taxable bonds with benefits under section 54 ec of income tax act, 1961. They are bonds offered by rural electrification corporation ltd rec, power finance corporation limited pfcl and national highways authority of india nhai, among others. Download form resident download form nris irfc capital gain bond. Buy tax free, tax saving bonds online download bonds. Rec a listed public sector enterprise government of india with a net worth of rs.
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