IRFC Capital Gain Bonds Explained
Section 54EC in plain words: who the bonds are for, how the lock-in works and what to keep in mind before you apply.
Watch on YouTubeBonds & Fixed IncomeOpen for FY 2026-27
IRFC Capital Gain Bonds
Indian Railway Finance Corporation LimitedSection 54EC Tax Exemption Bonds, Series-X, FY 2026-27
The Indian Railways' financing arm's 54EC series: the same exemption and five-year lock-in, with interest paid every 15 October, useful for staggering interest dates across issuers.
5.25%
p.a., paid once a year
5 years
lock-in
₹20,000
minimum, two bonds
₹50 lakh
cap per financial year
How to invest through Sanriya
Download the application form below (or use the online form) and print it on A4 paper.
Attach a self-attested copy of your PAN card, a self-attested address proof and one cancelled cheque.
Mention Broker Code SSL-014 and Sub Broker Code 7350200256 on the form so the application is mapped to Sanriya, then we track it end-to-end.
We verify everything against the filled sample before submission, so small mistakes never delay your Section 54EC deadline.
Worth knowing first
- Interest rate
- 5.25% p.a., payable annually on 15 October
- Lock-in
- 5 years from deemed date of allotment
- Face value
- ₹10,000 per bond
- Minimum investment
- ₹20,000 (two bonds)
- Maximum investment
- 500 bonds (₹50 lakh) per financial year
- Credit rating
- AAA-rated public-sector issuer
The Section 54EC exemption applies to long-term capital gains invested within six months of the date of transfer, up to ₹50 lakh per financial year.
Interest is taxable at your slab rate, but no TDS is deducted on 54EC bond interest.
The bonds are non-transferable, non-negotiable and cannot be offered as security for any loan.
A demat account is not mandatory; the bonds can be held in physical form.
The term sheet
- Type
- IRFC Capital Gain Tax Exemption Bonds – Series X
- Lock-in-period
- 5 Years from Deemed Date of Allotment
- Coupon (% p.a.)/ Interest Rate /Payable
- 5.25 % p.a, payable annually on 15th October every year till redemption and balance along with redemption.
- Interest on Application Money
- At the prevailing Coupon Rate from the date of realization of cheque / demand draft / NEFT / RTGS.
- Issue Opens on and Closes on
- 01.04.2026 and 31.03.2027
- Deemed Date of Allotment
- Last day of each month for application money cleared and credited in IRFC’s collection account
- Credit Rating
- CRISIL AAA/Stable’, ICRA AAA, CARE AAA/Stable
- Face Value / Issue Price/ Minimum Investment
- Rs. 10,000/- per Bond / Minimum Investment Rs.20,000/-
- Maximum Investment Rs.
- 500 Bonds of Rs. 10,000/- each in a financial year (Subject to section 85 (erstwhile 54EC) of Income Tax Act, 1961)
- TDS / Tax Benefit:/Taxation
- TDS will be deducted from Domestic investors./ U/s 85 (erstwhile 54EC) of Income Tax / Interest is Taxable, Principal amount on Maturity is Tax Free.
- Mode of Subscription
- 100% on application
- Transferability
- The Bonds are non-transferable, non-negotiable and cannot be Offered as a security for any loan or advance
- Maturity / Redemption AMT (Rs. Per bond)
- Bonds will be automatically redeemed by IRFC on maturity, without the surrender of Bond Certificate(s) and the proceeds would be paid by cheque or NECS/ECS.
- Cheque / Draft to be drawn in the name of
- “IRFC CAPITAL GAIN BONDS”
- Do I need Demat Account
- Demat account is not mandatory, if you don't have demat a/c, then you will receive physical bond certificate like your Fixed Deposit.
- Do I need to open new bank a/c from application accepting bank
- No, cheque of your existing bank account of any bank will work for investments
Forms & downloads
Rates and issue terms are as published by the issuer for the current series and are revised from time to time. Always confirm the live rate on the application form before investing. Interest is taxable as per the Income Tax Act, 1961; tax treatment depends on individual circumstances.
Submitting the form
Take a print of the application form on A4 paper, attach the documents below, and submit it to us or to any listed bank branch.
1
PAN Card and Address Proof Photo Copy self-attested by applicant.
2
One Cancelled Cheque copy.(for ECS/RTGS/NEFT payment of Interest /Maturity Amount.)
3
Cheque / DD should be drawn in favour of “IRFC Capital Gain Bonds”
4
On First come First Serve Basis
5
Keep photocopy of application form for your record.
6
You can send your Application along with above document to below mention address:- Sanriya Finvest, Kamdhenu, 2nd Floor, Opp. Prakash (MSEB Office) Bhavan, Next to Bank of Baroda, Near Chattushringi Temple, above Tribes India, Senapati Bapat Road, Shivajinagar, Pune, Maharashtra 411016, Mob. No. 9175193456 / 9175937625.
7
Before submitting your application, please send us an application image / softcopy / photocopy on whats app no. 9175193456 / 9175937625 to check if something is missing or needs to be corrected.
8
Or Submit / deposit your application form in Listed/ Design Bank Branches. (Find attached list below, Search for your city)
9
You need to carry properly filled application forms, submission centers do not provide application forms, only accept the forms and provide acknowledgement.
10
The Acknowledgement copy will suffice your taxation purpose.
11
Bond Certificate/ Letter of Allotment:-IRFC will issue the Bond Certificates within 2 months from the deemed dated of allotment or such extended period as may be decided by IRFC.
12
The actual bond will reflect in your demat account within 8-10 weeks’ time form date of allotment.
13
To track the status/allotment of your application form, send us the soft copy Application Form/ Acknowledgement Slip.
14
All application must have Broker Code: I006-SBICap, Sub Broker Code: 7350200256.
15
Free* Home Service available in Pune
16
Ask for service, not brokerage / commission / pass back / rebate, we don't entertain people of this kind.
Who can invest
- Individuals
- Hindu Undivided Families (HUF)
- Partnership Firm
- LLP
- Insurance Companies
- Companies and Body Corporates
- Provident Funds, Superannuation Funds and Gratuity Funds
- Banks
- Mutual Funds
- Financial Institutions (FIs)
- Foreign Portfolio Investors (Subject to existing regulations)
- RRBs
- NRIs/other foreign eligible investor investing out of NRO A/c on non-repatriable basis subject to applicable law
- Co-operative Banks
- Any other investor subject to applicable laws
Documents required
For Resident Indian Nationals:
- a] PAN CARD
- Documents in support of Name and Address (copies Self Attested in case of Individual, ANY ONE)
- a) Aadhaar Card
- b) Passport
- c) Driving License
- d) Identify Card issued by any institution
- e) Copy of the electricity bill or telephone bill showing residential address
- f) Any document or communication issued by any authority of the Central Government, State Government or local bodies showing residential address
- g) Voters Identity Card
- h) Ration Card
For NRIs / Other foreign eligible investor
- a) Passport-Mandatory
- b) PAN Card
- c] Indian Address Proof
- d] Overseas address proof.
For Corporate-Investor
- Documents in support (copies attested by Company Secretary/Director)
- a) Certificate of Incorporation and Memorandum & Articles of Association
- b) Resolution of the Board of Directors and identification of those who have authority to operate
- c) Power of Attorney granted to its managers, officers or employees to transact business, on its behalf
- d) Copy of PAN/PAN Allotment letter.
For Partnership Firms-Investor
- Documents in support (copies attested by Notary)
- a) Registration certificate, if registered
- b) Partnership deed
- c) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf
- d) Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses
- e) Telephone bill in the name of firm/partners
Trust & Foundations-Investor
- Documents in support (copies attested by Notary)
- a) Certificate of registration, if registered
- b) Power of Attorney granted to transact business on its behalf
- c) Any officially valid document to identify the Trustees, Settlors, Beneficiaries and those holding Power of Attorney, Founders/Managers/ Directors and their addresses
- d) Resolution of the managing body of the Foundation/Association
- e) Telephone bill
- f) Copy of PAN / PAN Allotment letter (otherwise exemption certificate issued by IT Authorities)
Paying by bank transfer
Original application along with necessary documents submit to the particular bank branch of your Location (collecting Bank on same day) along with UTRN / Payment details and Bank Statement.
Beneficiary Name : IRFC Capital Gain Bonds
HDFC Bank
- A/c No
- 57500000106078
- IFSC Code
- HDFC0000003
- MICR Code
- 110240001
- Branch
- HDFC Bank Ltd. / Trade Finance Department, E – 19/29, 2nd Floor, Harsha Bhawan, Middle Circle, Connaught Place, New Delhi – 110 001.
Canara Bank
- A/c No
- 2471201001214
- IFSC Code
- CNRB0003525
- MICR Code
- 110015199
- Branch
- Government Business Branch, National Archives of India,Near Shastri Bhawan, Janpath, / New Delhi – 110001
IDBI Bank
- A/c No
- 0171103000000374
- IFSC Code
- IBKL0000171
- MICR Code
- 110259013
- Branch
- Sushant Lok, Gurgoan 6-7, Vipul Square, Sushant Lok, Phase-I, B-Block, Gurgoan 122002.
ICICI Bank
- A/c No
- 000405115784
- IFSC Code
- ICIC0000004
- MICR Code
- 400229002
- Branch
- ICICI Bank, / Capital Market Division, 122/1, Mistry Bhavan, Backbay Reclamation, Churchgate, Mumbai – 400020.
Axis Bank
- A/c No
- 917020075878468
- IFSC Code
- UTIB0000007
- MICR Code
- 110211002
- Branch
- 148, Statesman House, Barakhamba Road, Cannaught Place, New Delhi – 110001.
IDBI
- A/c No
- 0171103000000374
- IFSC Code
- IBKL0000171
- MICR Code
- 110259013
- Branch
- Sushant Lok Gurgoan 6-7, / Vipul Square, Sushant Lok Phase-I, B- Block, Gurgoan – 122002.
Indusind
- A/c No
- 250010112017
- IFSC Code
- INDB0000005
- MICR Code
- 110234002
- Branch
- Barakhambha Road, Dr. Gopal Das Bhawan 28, Barakhamba Road, New Delhi – 110001
Kotak Bank
- A/c No
- 9047232511
- IFSC Code
- KKBK0000172
- MICR Code
- 110485002
- Branch
- G-F 3A-3J, Ground Floor, / Ambadeep Building, 14 Kasturba Gandhi Marg, New Delhi-110001
State Bank of India
- A/c No
- 41791755046
- IFSC Code
- SBIN0000300
- MICR Code
- 400002010
- Branch
- Institutional Banking Division, Mumbai Main Branch, Samachar Marg Fort / Mumbai 400001
Yes Bank
- A/c No
- 000381000000434
- IFSC Code
- YESB0000003
- MICR Code
- 110532002
- Branch
- Plot No. 11/48, Shopping Centre, Diplomatic Enclave, Malcha Market, Chanakya Puri, / New Delhi – 110021.
Karnataka Bank
- A/c No
- 0537202500000801
- IFSC Code
- KARB0000537
- MICR Code
- 110052002
- Branch
- Corporate Finance Branch, G-12, Marina Arcade, Near Radisson Blu, Connaught Place, / New Delhi, Delhi 110 001.
Status, interest and maturity
For IRFC Capital Gain Bonds Application status, interest, maturity payment, name / bank change, bond certificate etc. contact the Registrar & Transfer Agent of issue :-
KFin Technologies Private Limited, (Formerly known as “Karvy Fintech Private Limited”)
Selenium Tower B, Plot Nos. 31 & 32, Financial District , Nanakramguda , Serilingampally Mandal , Hyderabad – 500032, P: +91 40 6716 2222, F: +91 40 2343 1551, Mr. M Murali Krishna & Mr. R.Williams, Email : [email protected]; [email protected]
The details of the Nodal Officer of the Registrar is as under –
Mr. Nagesh Govu, Email : [email protected] Tel.: +91 40 6716 1503, Fax.: +91 40 2343 0814
Submission centres across India
Questions investors ask
Long Term Capital Gains are the gains made from the selling of a Long Term Capital Asset, and they are subject to Capital Gains Tax. However, if this balance is invested in IRFC Capital Gain Bonds stated in Section 85 (erstwhile 54EC) within 6 months of the selling of the previous asset, such tax will be avoided.
Under section 85 (erstwhile 54EC), there are four eligible bond options for investment: – 1.REC (Rural Electrification Corporation) 2.IRFC (Indian Railway Finance Corporation) 3.PFC (Power Finance Corporation Ltd) & 4.HUDCO (Housing & Urban Development Corporation Ltd)
5 years from the Deemed Date of Allotment. If the amount has been paid for the purchase of the bonds, the application cannot be withdrawn. These bonds are not traded on a stock exchange.
A 5.25% annual payment is provided IRFC Capital Gain Bonds.
The interest is only paid yearly.
The interest on IRFC Capital Gain Bonds is due on 15th October every year. Normally, the interest is credited by NEFT / RTGS on the same or next day (subject to banking holidays).
No, the interest earned on IRFC Capital Gain Bonds is taxable…
TDS will not be deducted on IRFC Capital Gain Bonds, but interest will be taxable.
The IRFC Capital Gain Bonds issue begins on April 1, 2026 and ends on March 31, 2027.
Payment can be made by cheque, DD, RTGS, or NEFT (details given above)
You may apply for the 85 (erstwhile 54EC) IRFC Capital Gain Bonds either offline with physical forms or download form online from www.sanriya.in.
100% on applicant allotment can be completed, provided the application is in place.
Last day of each month for application money cleared and credited in companies collection account.
From the date of realization of the cheque/demand draft/NEFT/RTGS , at the prevailing Coupon Rate
Rs.10,000/- per bond / Rs.20,000/- as a minimum investment
In a financial year, 500 bonds of Rs. 10,000/- each (Subject to section 85 (erstwhile 54EC) of Income Tax Act, 1961)
Each bond must be worth Rs. 10,000/-, so you can purchase either 57 or 58 bonds, i.e. Rs. 5,70,000 or Rs. 5,80,000 respectively.
Since each bond is worth Rs. 10,000/-, the company will give you 250 bonds in a single certificate.
These IRFC Capital Gain Bonds can be purchased in either physical or demat form. A demat account is not mandated; there is no need to open a new one. If you do not have a demat account, you will get a physical bond certificate similar to your Fixed Deposit Receipt.
There is no need to open a new bank account; a cheque from your existing bank account from any bank would sufficient for investments. (It is not required to open bank account with application submission centre)
IRFC Capital Gain Bonds are non-transferable, non-negotiable, and cannot be used as collateral on any bank advance or loan.
At maturity, IRFC Capital Gain Bonds will be immediately repaid without the surrender of Bond Certificate and the invested amount will be transferred to the investor's bank account via RTGS, NEFT or cheque (If a bank credit is rejected due to a change of account number, IFSC code, the closure of a bank account, etc.). If you have not received the amount then contact the Registrar of Issue or your broker.
No, brokerage is paid by IRFC Capital Gain Bonds to broker.* (Broker gets only 0.05% of invested amount.) So ask for service, not brokerage.
No, it is illegal.
If your location has not mentioned in the list, in that case you have to send Capital Gain Bond Application Form along with above document to below mention address by registered post or courier :- Sanriya Finvest, Kamdhenu, 2nd Floor, Opp. Prakash Bhavan, Next to Bank of Baroda, Near Chattushringi Temple, above Tribes India, Senapati Bapat Rd, Shivajinagar, Pune, Maharashtra 411016, Mobile No: 9175193456 / 9175937625 We will inform you on receipt of your application, will check everything and update you if any this is pending, will submit your form and send you the acknowledgement.
Kindly contact the registrar of issue for information on the status of your application form, interest payments, maturity payments, change of bank data, name change, candidate change, and so on for IRFC Capital Gain Bonds.
Yes, you can submit several applications; however, the maximum tax benefit is Rs 50 lakhs under section 85 (erstwhile 54EC).
You may only get one nominee per application form.
It is entirely optional.
Yes, you must submit the required paperwork, as well as your UTRN No. / Payment reference number, to the nearest bank branch.
Your acknowledgement would serve as evidence of your investment. The certificate could arrive at any time from IRFC Capital Gain Bonds.
If you have applied for allotment in demat mode, you will not get a physical certificate; instead, your bonds will be reflected in your demat account as frozen holdings.
It usually takes 8 weeks from the date of your cheque clearance, but it can be delayed by 15 days at times.
Indian Railway Finance Corporation Limited
Indian Railway Finance Corporation (IRFC) was set up on 12th December, 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets.
IRFC is a Schedule ‘A’ Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt. of India. It is also registered as Systemically Important Non–Deposit taking Non Banking Financial Company (NBFC – ND-SI) and Infrastructure Finance Company (NBFC- IFC) with Reserve Bank of India (RBI).
In more than 30 years of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay.
The primary objective of IRFC is to meet the predominant portion of ‘Extra Budgetary Resources’ (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The Company’s principal business therefore is to borrow funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways.
IRFC’s cumulative funding to rail sector has crossed Rs.1.80 lakh crore as of 31st March, 2017 and is all set to cross Rs.2.20 lakh crore by the end of March, 2018. The funds are utilized for acquiring rolling stock assets and also building up infrastructure, constituting significant part of annual capital expenditure of Indian Railways. So far, it has funded acquisition of 8998 locomotives, 47910 passenger coaches, 2,14,456 wagons, which constitute around 70% of the total rolling stock fleet of Indian Railways.
From 2011-12 onwards, IRFC has forayed into funding of railway projects and capacity enhancement works. The Company has been assigned the additional task of funding Railway Projects through Institutional Finance to the extent of Rs.1.50 Lakh Crore by 2019-20.
IRFC has also been lending to various entities in Railway sector like Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL) etc.
IRFC’s constant endeavor has been to diversify its borrowing portfolio in terms of instruments, markets and investors which has led to the Company meeting the targeted borrowings year after year, through issue of both taxable and tax-free bonds, term loan from banks/financial institutions besides off shore borrowings, at competitive market rate.
From our channel
Watch, then apply
Short explainers on IRFC Capital Gain Bonds from the Sanriya Finvest channel, a few minutes each.
How to apply for Capital Gain bonds?
The 54EC application end to end: the form, the cheque or transfer, the documents and where to submit it.
Watch on YouTubeHow to Save Capital Gains Tax on Property (Legally)
The routes the Income Tax Act allows after a property sale, and where Section 54EC bonds come in.
Watch on YouTubeRacing a Section 54EC deadline, or planning ahead?
Tell us your transfer date and the amount. We map the issuers, dates and paperwork so the exemption is never lost to a missed step.
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