Table of Contents
How do I buy NHAI capital gain bonds?
How to purchase Capital Gain 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.
Which is better REC or NHAI bonds?
REC bonds score a bit higher than NHAI bonds. Because on maturity i.e., after 5 years, NHAI bondholders have to apply for surrender of bonds only then the maturity amount is redeemed and paid by cheque or ECS. In the case of REC bonds, it will be automatically redeemed and paid by cheque or ECS.
What is current interest rate on 54EC bonds?
Investment amount: Minimum investment in 54EC bonds is 1 bond amounting to Rs. 10,000 and the maximum investment in 54EC bonds is 500 bonds amounting to Rs 50 lakhs in a financial year. Interest Rate: 54EC bonds offer 5% rate of interest payable annually.
Which bonds are eligible under the Section 54EC?
The eligible bonds under Section 54EC are REC (Rural Electrification Corporation Ltd), PFC (Power Finance Corporation Ltd) , NHAI (National Highways Authority of India) and IRFC (Indian Railways Finance Corporation Limited).
Is interest on NHAI bonds tax free?
Both REC and NHAI bonds offer an interest rate of 5.75% per annum, payable annually. Interest earned from 54EC bonds is taxable; however, no TDS is deducted on interest. 54EC bonds are AAA rated bonds and are backed by the government; hence, the risk of interest and capital payment is protected.
How do I apply for NHAI bonds online?
How to Buy NHAI Capital Gain Bonds through Online?
- Mode of Holding. You could select to opt between demat and Physical mode.
- Document Upload. You can upload the following document for the verification.
- Online Payment. Make the online payment through debit card / net banking to finally complete the transaction.
How much should I invest in NHAI bonds?
Minimum investment in NHAI bonds is ₹10,000/- i.e. one bond and the maximum is ₹50, 00,000/- i.e. 500 bonds.
Can NHAI bonds be redeemed before maturity?
The NHAI /REC bond can be fully redeemed at maturity after three years. You cannot transfer these bonds in another person’s name. Also, it is a non-negotiable financial instrument, hence one should not expect to get money by keeping the bond as a security against any loan or advance, since this is not permitted.
Are NHAI bonds taxable?
The interest on the bonds is taxable at your slab rate. The bonds have a lock-in period of 5 years.
Where can I buy NHAI tax free bonds?
Therefore are available on NSE/BSE for trading. For any retail investor having an existing trading /Demat a/c, investor can buy the bond from the exchange like an equity stock on the basis of the availability.
Can I buy capital gain bonds after 6 months?
You have to invest in the specified long term asset within a period of 6 months from the date of sale of original asset. Is this benefit available against Short Term Capital Gains? No. This benefit can only be claimed against long term capital gains.
Is NHAI bond safe?
National highway authority bond has the AAA- highest credit rating which means to invest in NHAI bonds online is safe, secure, and less risk.
Can I Investment in 54EC after 6 months?
If they have received your payments within a period of six months, you are eligible for the benefits under section 54EC. I wanted to invest in REC/NHAI bonds but they are not available in market at this time and hence I am not able to invest my funds.
When should I invest in 54EC bonds?
To avail the tax-exemption the investment must be made within 6 months of the date of sale of immovable property. Such investment can be redeemed only after 5 years. Before april 2018 the bonds could be redeemed within 3 years.
Are NHAI bonds taxable on maturity?
NHAI will open its public issue of tax free, secured, redeemable, non convertible bonds of face-value of ` 1,000 each, in the nature of debentures having tax benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended for an amount aggregating to a total of ` 3,300 crores.
Is NHAI bonds tax free?
NHAI plans to raise funds through public issue of tax free, secured, redeemable non-convertible bonds with Face Value of Rs 1,000 each for an amount of Rs 1,000 crore with an option to retain over subscription of upto additional Rs 9,000 crore, aggregating upto a total of Rs 10,000 crore.
Are NHAI bonds safe?
These bonds are AAA rated and are backed by the government. Hence, the risk of interest and capital payment is protected. This rating indicates the highest safety with regard to the timely payment of interest and principal.
Which is best infrastructure bond?
IFCI pays the highest interest amongst all of them. For a 10 year period, IFCI pays 9.09% while REC pays 8.95%, PTC India Financial pays 8.93% and SREI Infra Finance pays 8.9%. For the 15 year tenure, IFCI pays 9.16% while all others pay 9.15%.