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By purchasing 54EC capital gain bonds, investors can take advantage of the capital gain tax exemption provided by Section 54EC of the Income Tax Act of 1961. If investors buy these bonds within six months of selling an immovable property, they can avoid paying long-term capital gains taxes on those earnings. For 54EC bonds, the annual maximum investment limit is Rs 50,000,000. The interest rate on these bonds has been raised to 5.25% annually beginning of April 1, 2023. It is significant to remember that these bonds' interest earnings are subject to income tax.
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RRFinance TheGroup-RRFinancial,establishedin1986, anintegratedfinancial servicesGroup, offering a wide range of financial products and services to corporate, Institutions, High- NetworthIndividualsandRetailInvestors.
AboutCapitalGainBonds Capital gain bonds are a type of investment instrument issuedbythegovernmentofIndiatoprovidetaxbenefitsto individuals who have earned long-term capital gains. These bondsarealsoknownasLong-TermCapitalGain(LTCG) Bondsandareissuedbyspecifiedentitiesauthorizedbythe government,suchasRuralElectrificationCorporation(REC) andNationalHighwaysAuthorityofIndia(NHAI). www.rrfinance.com
BenefitsofCapitalGainBonds Secure investment Long-term investment 1 Taxexemptionon 2 capitalgains Fixedinterest rate 3 4 Liquidity 5 www.rrfinance.com
Howtoapplyincapitalgainbonds Checkeligibility criteria 4Submittherequired documents Waitforallocation Identify the authorizedentity 2 1 Fill out the applicationform 3 6 5 Makethepayment www.rrfinance.com
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