Capital Gain Bonds are instruments offering you tax exemption for transferring gains of long term capital assets. As per provisions of Income Tax Act, 1961, any long term capital gains arising from transfer of any capital asset would be exempt from tax under Section 54 EC of the Act if ;

·         The entire capital gain relized is invested within 6 months of the date of transfer in eligible bonds

·         Such Investment is held for 3 years

·         To avail of capital gain exemption, the bonds so acquired cannot be transferred converted into money or any loan or advance can be on security of such bond with 3 years from date of acquisition else, the benefit would be withdrawn

·         If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempt from tax.

·         Capital Gain Bond limit 50 lakh.

Details about REC & NHAI issue Capital Gain Bonds 2012-13

Who can apply?

Individuals, HUF , Partnership Firm, other eligible firms

Document to be provided by all investor

1. Self attested copy of PAN Card (In case of joint application, self attested PAN copy of all applicants)
2. Address Proof
3. Cancelled Cheque