Capital Gain Bonds (54EC Bonds)

Save tax and earn secure returns on capital gains

Capital Gain Bonds, also known as 54EC Bonds, are a smart investment avenue for individuals who’ve earned long-term capital gains from the sale of real estate or other capital assets. By investing in these bonds, you can claim exemption from capital gains tax under Section 54EC of the Income Tax Act.

Issued by government-backed institutions such as REC, NHAI, PFC, and IRFC, these bonds offer a fixed rate of interest over a lock-in period of 5 years. They are a secure, tax-efficient option for preserving wealth after a property sale or large capital gain event.

Key Features of Capital Gain Bonds

  • ✔ Tax Exemption: Save up to ₹50 lakhs of long-term capital gains by investing in 54EC bonds.
  • ✔ Fixed Returns: Earn secure interest (typically ~5.25% p.a.) paid annually.
  • ✔ Government-Backed: Issued by REC, NHAI, IRFC, and other trusted PSUs.
  • ✔ Lock-in Period: 5-year lock-in with no premature exit allowed.
  • ✔ Safe & Regulated: Backed by RBI-approved institutions and governed under Section 54EC.

Who Can Invest?

Individuals, Hindu Undivided Families (HUFs), companies, and partnership firms can invest in 54EC bonds, provided they’ve earned long-term capital gains from:

  • Sale of real estate (residential/commercial)
  • Sale of land or building
  • Other eligible capital assets with long-term holding

Capital Gain Bonds not only help you save tax but also provide a steady return without market volatility. Reach out to us to invest seamlessly in approved 54EC bonds.

Invest in Capital Gain Bonds