54EC Capital Gain Bonds

Section 54EC of the Indian Income-Tax Act, 1961 permits a deduction in the long term capital gain, arising from the sale of long term capital assets other than Equity shares and securities by investing the proceeds in some specified bonds known as 54EC Capital Gain Bonds. These bonds are currently offered by NHAI and REC. The Exemption is allowed on the amount of investment made in these bonds up to a limit of 50 Lac. Any individual, HUFs, Partnership firms, Companies etc can avail this exemption.


These bonds are locked in for 3 years and in these 3 years from the date of allotment, these bonds are non transferable, non- negotiable and cannot be offered as security for any loan or advance.

54EC Capital Gains Bonds of NHAI for the year 2016-17

Credit Rating IND AAA/Assigned by India Ratings & Research 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 Act1961.As per the provision of sub-section (1) of section 54EC by theFinance (No. 2) Act, 2014, (w. e. f. 1-4-2015) “ provided furtherthat the investment made by an assessee in the long-termspecified asset, from capital gains arising from transfer of one ormore original assets, during the financial year in which theoriginal asset or assets are transferred and in the subsequentfinancial 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 and credited to NHAI’s collection account
Transferability The Bonds are non-transferable, non-negotiable and 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 and Final Interest at the time of Maturity
Coupon rate 6.00% Payable annually.
Redemption Bullet, at the time of Maturity i.e. 3 years
Trustee M/s IL & FS Trust Company LtdC-22,G-BlockBandra kurla complexBandra (East), Mumbai-400051
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 Email :beetalrta@gmail.com
Closure of Issue

The issue is open on-Tap Basis and 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.



54EC Capital Gains Bonds of REC for the year 2016-17

Issue REC Capital Gains Tax Exemption Bonds Series-X
Credit Rating 'CARE AAA' by Credit Analysis & Research Ltd. 'CRISIL AAA' by CRISIL Limited 'IND AAA' by India Ratings & Research Private Ltd.
Face Value Rs. 10,000/- per bond
Issue price Rs. 10,000/- per bond
Coupon rate 6.00% annually
Issue Date Issue Opening Date: April 6, 2016, Issue Closing Date: March 31, 2017 (at the close of the banking hours) or at a date as may be decided by REC in its absolute discretion
Minimum application size Two Bond of Rs. 10,000/- each. (Minimum Rs. 20,000)
Maximum application size 500 Bonds of Rs. 10,000/- each in a financial year (Subject to Section 54EC of Income Tax Act, 1961)
Size of the Issue 1000 Crore plus green shoe option to retain the oversubscription
Mode of Subscription 100% on application
Cheque / Draft to be Drawn in the Name of ‘RURAL ELECTRIFICATION CORPORATION LIMITED-54EC Bonds’
Deemed Date of Allotment Last day of each month in which the subscription money is received and credited to REC account
Transferability Non-transferable, Non-negotiable and cannot be offered as a security for any loan or advance
Maturity / Redemption At par, at the end of 3 years from the Deemed Date of Allotment
Interest payment Annual, June 30 of each year
Tenor 3 years
Trustee SBICAP Trustee Company Ltd., Mumbai
Bankers to Issue HDFC Bank, Canara Bank, IDBI Bank, Indusind Bank, Yes Bank, ICICI Bank, Axis Bank

Apply for 54 EC Capital Gain Bonds