Capital gain bonds are financial instruments issued by certain government entities to provide tax-saving opportunities to investors. These bonds offer tax exemptions on long-term capital gains from selling assets like real estate, provided the gains are invested in these specified bonds. The lock-in period for such investments is usually five years.
Capital gains tax exemption bonds are also known as 54EC bonds and are available to investors who earned long-term capital gains from sale of land or building or both and would like tax exemption on these gains. 54EC bonds are AAA rated bonds and are backed by the government; hence, the risk of interest and capital payment is protected.
54EC Capital Gain Bonds
Main benefits of the product:
- Save on Long-Term Capital Gains Tax
- 54EC bonds are AAA-rated and issued by Govt companies only
- 54EC bonds come with a lock-in period of 5 years
- Fixed Interest rate of 5.25% - payable annually
- Interest received is taxable. No TDS on interest and wealth tax exempt.
- Minimum investment: 1 bond - Rs. 10,000
- Maximum investment: 500 bonds - Rs 50 Lakh in a financial year.
- Mode of holding: Demat or physical
- Application payment mode: : Cheque/DD/RTGS
How can we help?
As a professional, we guide investors on the eligibility criteria and benefits of investing in capital gain bonds to save on taxes. We assist investors in making informed decisions about the investment duration and amount to maximise tax savings while achieving the investor's financial goals.
Secure Your Income, Minimize Your Taxes
Tax-free bonds are a smart investment choice for individuals seeking stable, fixed returns with zero tax on interest income. Issued by government-backed entities, these bonds offer long-term safety and regular payouts-making them especially attractive to high-net-worth individuals and retirees.
At Finsship, we help you identify the right tax-free bond opportunities that align with your financial goals, risk appetite, and income needs. Whether you're looking to diversify your portfolio or create a tax-efficient income stream, our team ensures your capital stays secure while your returns stay completely tax-free.
