Capital Gain Bonds

Investors can benefit from the capital gain tax exemption under Section 54EC of the Income Tax Act 1961 by investing in 54EC capital gain bonds. These bonds allow investors to save on long-term capital gains resulting from the sale of immovable property, provided they invest in the bonds within six months of the sale. The maximum investment limit for 54EC bonds is Rs. 50,00,000 per financial year. With effect from 1st April, 2023, the interest rate on these bonds has been increased to 5.25% per annum. It is important to note that the interest earned on these bonds is liable to income tax.

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