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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.

A bond is a loan to a government or company for a fixed term in return for interest. Through Sanriya you can apply for 54EC capital gain bonds from REC, PFC, IRFC and HUDCO (5.25% a year, five-year lock-in, up to ₹50 lakh a year against a capital gain), RBI Floating Rate Savings Bonds and Government of India securities. We match the instrument to the need, check the form and track it to maturity.

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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.

54EC capital gains tax calculator

Invested in 54EC bonds
₹30 lakh
Interest over 5 years
₹7.88 lakh
Taxable, paid yearly
Tax saved
₹3.9 lakh
₹30 lakhcapital gain
  • Tax saved₹3.9 lakh 100%
  • Tax on the restNil 0%

Limit ₹50 lakh a year, within 6 months of sale; 5.25% p.a. for 5 years. Tax shown at 12.5% + 4% cess; confirm your rate with a CA.

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Bonds & Fixed Income: 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 the Section 85 (earlier 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

  • Through a broker registered with the issuers, a designated bank branch or the issuer directly. Sanriya Finvest, Shivajinagar, Pune, distributes REC, PFC, IRFC and HUDCO capital gain bonds: we check your six-month deadline, fill and verify the application against a sample, and send it to the collecting bank with your payment going straight to the issuer. From 1 April 2026 the exemption is in Section 85 of the Income-tax Act, 2025 (earlier Section 54EC): up to ₹50 lakh a financial year, five-year lock-in.

  • 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 85 of the Income-tax Act, 2025 (Section 54EC until March 2026) 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.

  • 54EC bonds shelter a long-term capital gain: up to ₹50 lakh a year, invested within six months of the sale, locked for five years at 5.25%. RBI Floating Rate Savings Bonds are for ordinary savings: from ₹1,000, seven years, interest paid half-yearly at a rate reset every six months. One is a tax decision, the other an income decision.

  • RBI bonds and Government of India securities are sovereign obligations. 54EC bonds are issued by public sector companies (REC, PFC, IRFC, HUDCO) rated AAA, the highest credit rating. Holding to maturity returns the principal with interest; selling earlier carries price risk, as with any bond.

  • Resident individuals, Hindu Undivided Families, firms, trusts and companies. NRIs can hold 54EC bonds on a non-repatriable basis but cannot buy RBI Floating Rate Savings Bonds. 54EC bonds start at ₹20,000 (two bonds of ₹10,000) and RBI bonds at ₹1,000.

  • Your application is free. We receive brokerage from the issuer when an application carries our broker code, and your money goes directly to the issuer. We check each form against a filled sample before submission, so allotment is never delayed past a Section 54EC deadline by a small mistake.

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.

Sources: RBI: Floating Rate Savings Bonds 2020 (Taxable)Income-tax Department: Section 85, Income-tax Act 2025 (earlier Section 54EC)SEBI: regulations index

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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