Skip Navigation LinksHome > Products & Services > Section 54 EC - Capital Gain Bonds

Products & Services: Section 54 EC - Capital Gain Bonds

Safeguard your long term earnings from Capital Gain Tax
Capital Gains Bonds are instruments which offer tax exemption for transferring gains of long term capital assets. At Sushil Finance, we offer Capital Gains Bond under Section 54EC of the Income Tax Act, 1961.The Investment in these Bonds is to be made within six months from the date of such transfer of capital assets (Land/House Property etc.) for being exempted from Capital Gains Tax.

Bond & Benefits

The eligible bond under Section 54 EC are distributed by SFCL are:
  • RECL (Rural Electrification Corporation Ltd)
  • NHAI (National Highways Authority Of India)
  • PFC (Power Finance Corporation of India)

Features:

The features of each of the bonds are mentioned below:

Features RECL (Rural Electrification corporation Ltd) NHAI (National Highways Authority Of India) PFC Capital Gain Tax Exemption Bonds –Series I
Coupon/Interest rate/Yield 5.25% 5.25% 5.25%
Tax Status Taxable Taxable Taxable
Tax Benefit SEC 54 EC SEC 54 EC SEC 54 EC
Minimum (Rs.) 10,000 10,000 20,000
Maximum (Rs.) 50 Lacs 50 Lacs 50 Lacs
Tenure 3 Years 3 Years 3 Years
Mode of Interest Annual Annual Annual

Highlights of NHAI 54 EC Capital Gains Bonds issue : 2017-18


Credit Rating “CRISIL AAA/Stable” by CRISIL Ltd
Face Value Rs. 10000/- per Bond
Issue price Rs. 10000/- per Bond
Minimum application size One Bond of Rs. 10,000/-
Maximum application size 500 Bonds of Rs.10,000/- each (Rs.50,00,000) subject to fulfillment of other conditions as specified in Income Tax Act 1961. As per the provision of sub-section (1) of section 54EC by the Finance (No. 2) Act, 2014, (w.e.f. 1-4-2015) “ provided further that the investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred & in the subsequent financial year does not exceed fifty lakh rupees”
Size of the Issue Rs.5,000 Crore
Mode of Subscription 100% on application
Deemed Date of Allotment Last day of the month during which the application amount has been cleared & credited to NHAI’s collection account
Transferability The Bonds are non-transferable, non-negotiable & cannot be Offered as a security for any loan or advance.
Maturity At par, 3 years from Deemed Date of Allotment
Interest payment Annually On 1st April & Final Interest at the time of Maturity
Coupon rate 5.25% per annum
Redemption Bullet, at the time of Maturity i.e. 3 years 
Trustee M/s SBICap Trustee Company Ltd Apeejay House, 6th Floor 3, Dinshaw Wachha Road, Churchgate, Mumbai-400020
Registrar M/s Beetal Financial & Computer Services Pvt Ltd 99, Beetal House, Near Harsukh Das Mandir Behind Local Shopping Centre Madangir, New Delhi-110062 Tel :011 29961281-83
E.Mail: nhaibonds@gmail.combeetalrta@gmail.com
Closure of Issue The issue is open on-Tap Basis & will close on March 31, 2017 at the close of the banking hours or on achieving of ceiling limit of Rs.5,000 Crore without any further notice or at a date as may be decided by NHAI at its absolute discretion.

Provisions of Section 54EC

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 bond.
  • 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.
BONDS DOWNLOAD
NHAI Product Note Application Form Banking Matrix
PFC’s Product Note Application Form  

Phone Icon
Give us a MISSED CALL ON 08030636403


To Know More
Call: +91-22-40934071 / 72 / 73
Mon to Fri - 10.00 a.m. to 6.00 p.m.
(except public holidays)

Msg Icon : FINANCE WECONNECT to 56161
Mail Icon: primary@sushilfinance.com
ATTENTION INVESTORS:
• IPO Cheque: "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account." || • Prevent Unauthorized Transactions in your Demat Account - Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile number for all debit and other important transactions in your demat account directly from CDSL on the same day. “ISSUED IN THE INTEREST OF INVESTORS” "Prevent unauthorised transactions in your account --> Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day . Issued in the interest of Investors"
Registered Office : Sushil Financial Services Private Limited., 12, Homji Street Fort Mumbai-400 001 • Tel. No.+91-22-40936000 • Fax No.+91-22-22665758 • Email: info@sushilfinance.com
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.Receive alerts on your Registered Mobile number for all debit and other important transactions in your demat account directly from CDSL on the same day. Prevent unauthorised transactions in your account --> Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day.

SFSPL INB010982338 (BSE CM) | SFSPL INB230607435 (NSE CM) SFSPL INF010982338 (BSE F & O ) | SFSPL INF230607435 (NSE F & O ) SFPSL INE230607435 (NSE CDX) | SFPSL INE260607435 (MSEI CDX) SFPSL INB260607438 (MSEI CM) | SFPSL INF260607438 (MSEI F & O) SCPL NBFC : N-13.01901 (RBI) | SFSPL DP:INDPCDSL1942002 (CDSL)SFSPL SEBI Research Analyst (RA) No: INH000000867 SGCPL MCX : INZ000025633 SGCPL NCDEX : INZ000025633
© 2016 Sushil Finance. All rights resevered.
Top
Request a Call Back
Existing Client Visitor




close