Are 54 EC bonds safe?

Are 54 EC bonds safe?

Safe and Secure: 54EC bonds are AAA rated. Interest: Interest on 54EC bonds is taxable. No TDS is deducted on interest from 54EC bonds and wealth tax is exempted. Tenure: 54EC bonds come with a lock-in period of 5 years (effective from April 2018) and are non-transferable.

How do I get Sec 54 EC bonds?

How to invest in 54 EC capital gain tax exemption bonds online in…

1. Our Answer: 54EC bonds are specifically meant for investors earning long-term capital gains.
2. Investment via broker.
3. Click the “Fill a New Form online” button for the bond issuer you prefer.
4. Click the “upload Application/KYC documents” button.

How do I redeem my NHAI bonds?

Bonds will be automatically redeemed by NHAI on maturity, without the surrender of Bond Certificate(s) and the proceeds would be paid by cheque or NECS/ECS. Demat account is not mandatory, if you don’t have demat a/c, then you will receive physical bond certificate like your Fixed Deposit.

How is US 54 exemption calculated?

If the new house is sold before a period of 3 years from the date of its purchase/completion of construction, then at the time of computation of capital gain arising on transfer of the new house, the amount of capital gain claimed as exempt under section 54 will be deducted from the cost of acquisition of the new house …

Can REC bonds be redeemed before maturity?

What if I redeem the bonds issued by REC/NHAI before the period of three years after investment? Yes, provided you invest the amount in three year bonds issued by REC/NHAI.

How much should I invest in capital gain bonds?

Investment amount should not exceed Rs. 50 Lakh. In case the capital gain was shared by partners in a real estate business, each partner is entitled to a maximum limit of Rs. 50 Lakh.

Are REC bonds safe?

(REC) bonds are tax-free bonds issued by government institutions and offer high-grade investment ratings. The tenure of these bonds is generally 10-15 years. Any interest earned on these bonds is exempt from tax. So, you cannot avoid risk under an investment.

Where can I buy NHAI tax-free bonds?

These Capital Gain bonds can be purchased either from NHAI/ REC or from authorised brokers of these bonds. There is no online mechanism of purchasing these bonds and a person would be required to physically visit their office and fill in the physical form.

Where can I buy NHAI tax free bonds?

Are NHAI bonds safe?

The bonds issued by the NHAI are rated AAA by CRISIL and CARE which prominent rating agencies of India. AAA is the highest rating that may be assigned to an issue of bonds by a major rating agency. So as per rating given by the Agencies these bonds are safe to invest.

What are the conditions to be fulfilled to avail exemption u/s 54 EC?

Exemption under Section 54 The conditions that need to be satisfied to avail the benefit of the said section are as follows: Asset must be classified as a long-term capital asset. The asset sold is a Residential House. Income from such a house should be chargeable as Income from House Property.

How do I claim US exemption 54?

To claim exemption under section 54, the taxpayer should purchase another house within a period of one year before or two years after the date of transfer of old house or should construct another house within a period of three years from the date of transfer.