INVEST IN 54EC BONDS TO SAVE CAPITAL GAINS TAX BEFORE THE END OF THIS FINANCIAL YEAR 📈
▶️ Any individual is liable to pay tax on capital gains arising from sale of any assets as per the Income Tax Law.
▶️ Any capital gains arising on sale of any immovable property held for more than two years would qualify as long term capital gains.
▶️ Under section 54EC of the Income Tax Act, the gains if invested in notified bonds within a period of 6 months of sale would qualify for exemption from capital gains tax.
▶️ The exemption on such notified bonds of the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) is available up to INR 50 lakhs.
▶️ The bonds issued after 1st April 2023 pay an interest of 5.25%p.a. which is taxable are for a term of five years.
▶️ Any individual investing in such bonds effectively earns 10.85%p.a. CAGR (Compounded Annual Growth Rate) across a tenure of 5 years considering the capital gain tax saving and interest from such investment.
