54 EC Capital Gain Bonds or capital gains bonds as they are known, offer tax exemption on long term capital gains tax. These bonds are specifically meant for the investors who have earned long term capital gains & would like to save capital gains tax on them. However, these bonds do not allow any tax exemption on short term capital gains tax.
Companies that issue these bonds (54EC Capital Gain Bonds) enjoy high credit rating as they are mostly government backed entities ,
Rural Electrification Corporation (REC), was incorporated on July 25, 1969 under the Companies Act 1956. REC is a wholly owned Government of India, Public Sector Enterprise with a net worth of over Rs. 11104.25 Crore as on 31-03-2010. Its main objective is to finance and promote rural electrification projects all over the country besides providing assistance for generation projects, transmission and distribution projects. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.
National Highways Authority of India – NHAI
The National Highways Authority of India was constituted by an act of Parliament, the National Highways Authority of India Act, 1988. It is responsible for the development, maintenance and management of National Highways entrusted to it and for matters connected or incidental thereto.
As per provisions of Income Tax Act, 1961, any long term capital gains arising from transfer of any capital asset would be exempt from tax under section 54EC of the Act if:
The entire capital gain realized is invested within 6 months of the date of transfer in eligible bonds
Such investment is held for 3 years
To avail of capital gain exemption, the bonds so acquired cannot be transferred or converted into money or any loan or advance can be taken on security of such bond within 3 years from date of acquisition else, the benefit would be withdrawn
If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempt from tax.
Under indexation you are allowed by law to inflate the cost of your asset by a Govt. notified inflation factor. This Inflation factor called as Cost Inflation Index. This Inflation Index is used to artificially inflate your asset price.
REC Allotment Link -Check here REC – 54 EC Capital Gain Bond
Just type application no and investor name then you can find out your allotment status
NHAI Allotment Link not available at Registrar site . For checking your status of allotment call or mail to Beetal Here is link for Beetal
[EXPAND Can I take Short Term Capital Gain Benefit? ]
No. Exemptions are not available for short term capital gains. So you can’t buy Capital Gain Bonds.
For Investment in 54 ec Capital Gain Bond ? – Write us firstname.lastname@example.org or call Rajendra : 77 1991 7444
http://www.puneinvest.com/how-to-54ec-capital-gain-bond/overview 54ec capital gain bondhttp://www.puneinvest.com/wp-content/uploads/2012/08/54ec.jpghttp://www.puneinvest.com/wp-content/uploads/2012/08/54ec-150x150.jpgRajendraCapital Gain Bond 54 EC Capital Gain Bonds or capital gains bonds as they are known, offer tax exemption on long term capital gains tax. These bonds are specifically meant for the investors who have earned long term capital gains & would like to save capital gains tax on them. However, these...RajendraRAJENDRATODKARadmin@puneinvest.comAdministratorPuneInvest -Investment Broker IFA Advisor