CAPITAL GAIN BOND 54 EC
According to Section 54 EC of IT Act, any person (Individual, HUFs, Partnership Firms, Companies etc) can avail exemption in respect of long term Capital gains (arising from the sale of land or property) , if the capital gain is invested in Capital Gain Bond. The exemption will be the amount of Capital Gain or the amount of investment made, whichever is less and has to be availed within six months of the sale of land / property.
- Interest rate : 5% per annum
- Lock-in-period of 5 years
- Maximum investment limit of up to Rs. 50 Lakhs in a year across the four issuers for claiming 54EC benefit.
Issuers for Capital Gain Bonds
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. SGB is free from issues like making charges and purity in the case of gold in jewellery form.