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54EC Capital Gain Bonds - RR Finance

Investors can benefit from tax exemption on capital gain Bonds under Section 54EC of the Income Tax Act 1961 by investing in 54EC capital gain bonds.

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54EC Capital Gain Bonds - RR Finance

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  1. 54EC CAPITAL GAIN BONDS Get Started with RR Finance pamdrr@rrfcl.com https://www.rrfinance.com

  2. CONTENT 01 Overview 02 Objectives 03 Tax Benifits 04 Investment 05 Contact number

  3. 54EC Capital Gain Bonds Investors can benefit from tax exemption on capital gains under Section 54EC of the Income Tax Act 1961 by investing in 54EC capital gain bonds. These bonds offer savings on long-term capital gains from selling property if the investment is made within six months of the sale. The maximum investment limit for these bonds is Rs. 50,00,000 per financial year. Starting from April 1st, 2023. It's important to remember that the interest earned on these bonds is subject to income tax. 54EC bonds have the highest safety rating ("AAA") and are issued by central PSUs, ensuring no repayment or interest risk.

  4. OVERVIEW Welcome to RR Finance Where we specialise businesses to Investors can benefit from tax exemption on Capital Gain Bonds under Section Income Tax Act 1961 by investing in 54EC Capital Gain Bonds. Rural Electrification Corporation: 01 REC bonds provide an interest of 5.25% per annum as on April 1, 2023, which will be paid every year on June 30 until redemption, and the company will pay the balance interest along with redemption. An investor needs to make a minimum investment of ₹10,000. This means they have to buy at least one bond. in new propelling heights. Indian Railway Finance Corporation: 02 Starting from April 1st, 2023, The interest rate on these bonds has increased to 5.25% per annum . It's important to remember that the interest earned on these bonds is subject to income tax. 54EC bonds have the highest safety rating ("AAA") and are issued by central PSUs, ensuring no repayment or interest risk. 54EC of the Power Finance Corporation 03 PFC Bonds, issued by the Power Finance Corporation Limited, are popular because they are capital gains tax exemption bonds or section 54EC bonds. Simply put, you can skip paying long-term capital gains tax arising out of sale of property or land by investing the realized capital gains in these bonds.

  5. How offline investment works? SECTION 54EC OF INCOME - TAX ACT Download & fill Application form Click to download form Section 54EC of Income-tax Act provides exemption in respect of long term capital gain which arises during sale/transfer of Land or building or both. PaymentBank details for making payemnt via RTGS/NEFT/CHEQUE Submit Application Submit application to nearest RR office or call us on 9350316010 to arrange pickup.

  6. BENIFITS OF 54EC CAPITAL GAIN BONDS Capital gain bonds also come with some additional benefits. They typically offer a fixed interest income, which means you can earn regular interest payments on your investment. This interest income is taxable based on your income tax rate. It's worth noting that these bonds have a specific purpose, which is to encourage individuals to reinvest their profits from property sales and provide them with a tax-saving option. By investing in these bonds, you can defer your tax payment and potentially earn interest on your investment. Please note that when investing in capital gain bonds, it is important to be aware of the lock-in period. This period refers to a specific duration, typically 5 years, during which you will not be able to withdraw your invested funds. Once this lock-in period is over, you'll receive your initial investment amount back without any additional tax implications. To be eligible for 54EC Capital Gain Bonds, you need to be an individual or a Hindu Undivided Family (HUF) who has earned long-term capital gains from specific assets. Long-term capital gains are usually profits from assets that you held for more than a certain period, such as one year

  7. KEY FEATURES Investment Amount Amount of 1 bond is 10,000/- and for PFC, IRFC, REC the minimum number of bond should be 2 that is 20,000/- for each and the maximum investment in 54EC bonds is 500 bonds amounting to Rs 50 lakhs in a financial year. Rate of Interest 54EC Capital gain bonds offer a 5.25% rate of interest payable annually. Maturity 54EC bonds come with a lock-in period of 5 years (effective from April 2018). Transferability The 54EC bonds cannot be transferred from one person to another at any point in time.

  8. THANK YOU FOR YOUR ATTENTION pamdrr@rrfcl.com https;//www.rrfinance.com

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