Welcome to our Capital Gains Bond – SEC 54 EC product page. We offer a comprehensive investment solution designed to help you save on capital gain taxes while securing attractive returns.
Overview
Capital Gains Bond, also known as Sec 54 EC Bonds, are a type of investment instrument authorized by the Income Tax Act, 1961. These bonds provide an opportunity for individuals to save on long-term capital gains taxes incurred from the sale of property or assets. By investing in these bonds, you can defer the payment of capital gains tax and enjoy the potential benefits of a reliable investment option.
Provisions of Section 54EC
As per provisions under section 54EC of Income Tax Act, 1961, any long term capital gains arising from transfer of any capital asset would be exempted from tax if:
- The asset being sold is a Long Term Capital Asset, which includes land or building or both. (The asset is considered long-term if the taxpayer has held it for a minimum of 24 months prior to the sale).
- The entire capital gains realized is invested within 6 months of the date of transfer in eligible Sec 54 EC Bonds.
- Such investment is held for 5 years and 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on security of such bond within 5 years from date of acquisition else, the capital gain exemption benefit would be withdrawn
- If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempted from tax.
- The total investment amount cannot exceed INR 50 lakhs during the current financial year and the subsequent financial year.
For more information and personalized advice, please contact Wealth Max. Our team of experts is ready to assist you with your financial planning needs. Reach out to us today to take the next step towards achieving your financial goals.
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