How To Get Income Tax Rebate on Capital Gains ?

How To Get Income Tax Rebate on Capital Gains ? – Number of times common Income Tax query regarding Capital Gain Tax ” whether any bonds available to claim capital gains tax relief? “

As per the notification released by Income Tax  section 54EC  One Can claim Income tax relief by investing the long-term capital gains in the bonds issued by the NHAI or National Highway Authority of India or by the Rural Electrification Corporation Limited (RECL).

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Guidelines for Investment under Section 54EC

  1. The investment should be made within a period of 6 months from the date of transfer of capital asset and bonds should not be redeemed before 3 years.
  2. This benefit cannot be availed in respect of short-term capital gain. Maximum amount which qualifies for investment will be Rs. 50,00,000. Thus, deduction under section 54EC​ cannot be claimed for more than Rs. 50,00,000. ​
  3. Interest earn on these bond is taxable
  4. No need to have the DMAT account for investment in NHAI or RECL bonds
  5. Investment can be done at any bank branches manually.
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