What are the payment methods for investing in IRFC-REC-PFC 54EC Capital Gain Bonds?
The payment methods for investing in 54EC IRFC-REC and PFC Capital Gain Bonds generally include: 1. Cheque: Investors can make payment for the subscription amount through a cheque. Cheque issued in favour of the designated bank account specified for the bond issue. 2. Demand Draft (DD): Alternatively, investors also may choose to make payment through […]
When does the issue of IRFC-REC-PFC Capital Gain Bonds open and close?
The IRFC-REC-PFC 54EC Capital Gain Bonds issue typically opens on in the month of April and closes on March, of the respective financial year. These months indicate the start and end of the eligibility period for investing in IRFC-REC-PFC Capital Gain Bonds under Section 54EC of the Income Tax Act. Click here for more details […]
Can TDS (Tax Deduction at Source) be deducted from the interest amount of IRFC-REC-PFC Capital Gain Bonds?
No TDS will be deducted from the interest earned from these bonds. IRFC, PFC, and REC are exempt from TDS under Section 193 of the Income Tax Act, 1961. Interest is Taxable. Click here for more details about IRFC Capital Gain Bonds Click here for more details about REC Capital Gain Bonds Click here for more […]
Is the interest on IRFC Capital Gain Bonds taxable?
Yes, the interest earned on IRFC-REC-PFC Capital Gain Bonds is taxable as per the Income Tax Act, 1961. The interest income from these bonds is considered as “Income from Other Sources” and is subject to taxation as per the individual’s applicable income tax slab rate. Click here for more details about IRFC Capital Gain Bonds Click […]
When will I get the interest payment on my IRFC-REC-PFC Capital Gain Bonds?
The interest payment on IRFC, REC and PFC Capital Gain Bonds is typically due on 15th October, 30th June and 31st July of each year respectively. Also interest amount is usually credited to the investor’s bank account. through NEFT/RTGS on the same or next day depending on banking holidays. Click here for more details about IRFC […]
Can I get interest on IRFC-REC-PFC Capital Gain Bonds monthly, quarterly, semi-annually or annually?
Investors who hold these bonds will receive an annual payment on the invested amount. The interest payment is typically made on an annual basis throughout the tenure of the bond. Click here for more details about IRFC Capital Gain Bonds Click here for more details about REC Capital Gain Bonds Click here for more details about […]
What is the coupon rate/interest rate/payable on IRFC-REC-PFC 54EC Capital Gain Bonds?
A 5.25% annual payment is provided by IRFC-REC-PFC 54EC Capital Gain Bonds, for Year 2023-24 Click here for more details about IRFC Capital Gain Bonds Click here for more details about REC Capital Gain Bonds Click here for more details about PFC Capital Gain Bonds
What is the Lock-in Period for IRFC-REC-PFC Capital Gain Bonds?
The lock-in period for IRFC-REC-PFC Capital Gain Bonds (54EC Bonds) was 5 years from the deemed date of allotment. Once an investor purchases these bonds and the amount is paid, the application cannot be withdrawn before the completion of the lock-in period. It’s important that during the lock-in period, the IRFC-REC-PFC Capital Gain Bonds are […]
Which bonds are valid under Section 54EC?
Under Section 54EC of the Income Tax Act, there are four specific types of bonds that are eligible for investment to avail the capital gains exemption: 1. NHAI (National Highway Authority of India) 54EC NHAI Capital Gain Bond (currently closed) 2. REC (Rural Electrification Corporation) 54EC REC Capital Gain Bond 3. IRFC (Indian Railways Finance […]
Why do you invest in IRFC-REC-PFC Capital Gain Bonds or 54EC IRFC-REC-PFC Capital Gain Bonds? What are the tax advantages of investing in IRFC-REC-PFC Capital Gain Bonds?
One of the main reasons investors also choose REC-IRFC-PFC Capital Gain Bonds is to avail themselves of the capital gains exemption under Section 54EC of the Income Tax Act, 1961. This section also allows individuals to claim exemption from capital gains tax if the proceeds from the sale of a long-term capital asset (such as […]