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Sanriya Finvest

The ballast

Bonds & Fixed Income

Predictable cash flows for the part of your money that shouldn't surprise you.

Government-backed and institution-issued instruments with fixed or floating interest, including 54EC capital gain bonds, RBI floating rate bonds and Government of India securities. Useful for near-term goals, retirees, and parking capital-gains proceeds tax-efficiently.

Try the numbers

Layer 2 of 6 in the access spectrum

Entry point

RBI bonds from ₹1,000

Tenure

Typically 5-7 years by instrument

Interest

Fixed or floating, not market-linked

Issuers

GoI/RBI, REC, IRFC, PFC, HUDCO

At a glance

*RBI bond: NSC rate plus 0.35%, reset every 1 January and 1 July; interest paid half-yearly. The capital gain bonds pay interest once a year and are Section 54EC bonds with a five-year lock-in and a ₹50 lakh cap per financial year.

How much tax does a 54EC bond save?

Enter the long-term capital gain from a property sale and see the invested amount, the tax saved and the interest the bonds pay.

Inputs

Result

Tax saved on the invested gain
₹3,90,000
Invested in 54EC bonds
₹30 lakh
Within the ₹50 lakh cap
Interest over five years
₹7,87,500
Paid once a year, taxable
Tax on the uninvested part
Nil

Up to ₹50 lakh a financial year, invested within six months of the transfer; the bonds pay 5.25% a year for five years. Tax shown at 12.5% plus 4% cess for illustration; confirm the rate that applies to you with your chartered accountant.

How it works

Match the instrument to the need

Capital gain bonds for tax deferral, RBI floating rate bonds for rate protection, G-secs for long safe duration. Each solves a different problem.

Understand the lock-in

54EC bonds carry a 5-year lock-in; most bonds reward holding to maturity. We make sure the tenure fits your cash-flow calendar before you commit.

Ladder and hold

Staggered maturities turn a bond portfolio into a schedule of predictable payouts instead of one big reinvestment decision.

Who this is for

Investors with property or other capital gains seeking Section 54EC exemption

Retirees who want contractual interest rather than market returns

Conservative allocations inside a larger goal-based portfolio

Anyone laddering known future expenses against known payouts

The bond desk

Questions investors ask

  • No, a demat account is not mandatory for REC, IRFC, PFC or HUDCO capital gain bonds. You can hold them in physical form; you'll need your PAN, a self-attested address proof and a cancelled cheque with the application.

  • Section 54EC requires investing the long-term capital gain within six months of the transfer date, up to ₹50 lakh per financial year. The earlier in that window you invest, the sooner interest starts accruing.

  • No. The capital-gains exemption applies to the amount you invest, but the interest the bonds pay is taxable at your slab rate. No TDS is deducted on 54EC interest; RBI Floating Rate Savings Bond interest is taxable and subject to TDS rules. Form 15G/15H applies if eligible.

  • 54EC bonds are locked for the full five years and are non-transferable; exiting early would also void the tax exemption. RBI Floating Rate Savings Bonds run seven years, with earlier redemption windows only for senior citizens, at a small interest penalty.

Risks and disclosures

Interest from most bonds is taxable at your slab rate.

Selling before maturity, where allowed, can mean a price below face value.

Corporate instruments carry issuer credit risk; ratings matter and can change.

Fixed-income instruments are subject to issuer, interest-rate and liquidity risk. Coupon rates shown are as published by the respective issuers for the current series and are subject to revision; always confirm the live rate on the issue form before investing. Tax treatment depends on individual circumstances and prevailing law; please consult your chartered accountant or tax professional before investing for a tax outcome.

Wondering if Bonds & Fixed Income belongs in your plan?

That depends on your goals, horizon and what you already hold: exactly the conversation we start with.

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