Buying or selling land, house, commercial property etc. makes you liable for Capital Gains Tax.
You are exempt from this tax when you invest all your capital gains into a Capital Gain Bond. This exemption comes under Section 54 EC of the Income Tax Act.
Keep in mind though that you must invest in Capital Gain Bonds (India) within 6 months of your transaction, in order to be eligible for tax exemption.
The interest from Capital Gain Bonds India is taxable.
The interest that would come from the Capital Gain Tax Bond, that is taxable only, and not the entire transaction that caused the Capital Gain in the first place. This means that you saved substantially on Capital Gains Tax when you re-invested the gains in Capital Gain Bonds.
Capital Gain Bonds eligible under Section 54 EC are:
• Rural Electrification Corporation Ltd. (RECL)
• National Highways Authority of India (NHAI)
You can invest a maximum of Rs. 50 Lakhs in one or both of them in a financial year.
Each of these has the same features:
1. Rate of Interest 6%, which is payable annually.
2. Minimum Investment is Rs. 10,000/-.
3. They are non-transferable Bonds.
4. They are locked-in for 3 years. They are automatically redeemed after this lock-in period.
5. They can be held in Demat or Physical form.
Good luck gaining on your capital with Capital Gain Bonds.
You are exempt from this tax when you invest all your capital gains into a Capital Gain Bond. This exemption comes under Section 54 EC of the Income Tax Act.
Keep in mind though that you must invest in Capital Gain Bonds (India) within 6 months of your transaction, in order to be eligible for tax exemption.
The interest from Capital Gain Bonds India is taxable.
The interest that would come from the Capital Gain Tax Bond, that is taxable only, and not the entire transaction that caused the Capital Gain in the first place. This means that you saved substantially on Capital Gains Tax when you re-invested the gains in Capital Gain Bonds.
Capital Gain Bonds eligible under Section 54 EC are:
• Rural Electrification Corporation Ltd. (RECL)
• National Highways Authority of India (NHAI)
You can invest a maximum of Rs. 50 Lakhs in one or both of them in a financial year.
Each of these has the same features:
1. Rate of Interest 6%, which is payable annually.
2. Minimum Investment is Rs. 10,000/-.
3. They are non-transferable Bonds.
4. They are locked-in for 3 years. They are automatically redeemed after this lock-in period.
5. They can be held in Demat or Physical form.
Good luck gaining on your capital with Capital Gain Bonds.
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