CAPITAL GAIN BONDS

A tax payer who wishes to claim the exemption from long-term capital gains has to invest the amount in the capital gains bonds within six months from the date of booking Capital Gains. It is possible by investing the capital gain amount in specific bonds, also called as Capital Gains Bonds. This benefit is available under section 54-EC of the Income Tax Act, 1961 (‘the Act’) up to a limit of Rs 50 Lakh in a single financial year. These instruments are not only capital protected instruments, but they also provide a steady stream of income to you. At idbidirect.in you can invest in Capital Gain Bonds. We provide you the necessary support to make investing in these products easier. We market Bonds of various companies, as and when they are issued , available to you for investments.

BONDS
8% SAVINGS(TAXABLE) BONDS,2003
PFC Capital Gain Tax Exemption Bonds –Series I

PFC Limited has come up with private placement of secured, non-convertible, non-cumulative, redeemable, taxable bonds in the nature of debentures on “On Tap” basis with benefits under section 54EC of the Income Tax Act, 1961.
Who can invest?
An Individual / HUF / Partnership firms/ Insurance companies/ Banks/ Mutual Funds/ Provident funds & Super-Annuation Funds / RRBs & FIIs
Minimum application size
Minimum size of Rs 20,000/- (2 bonds) and then in multiple of Rs 10,000/- (1 bond) thereafter
Minimum & maximum investment
Minimum investment of Rs. 20,000/- and Maximum investment upto Rs. 50 Lakhs
Coupon Rate
5.25% payable annually on 31st July till redemption and balance along with redemption
TDS
No TDS on Interest
Subscription & Tenor
Remittance of application money through electronic mode or cheque / draft drawn in favour of ‘PFC Capital Gain Bonds’. Tenor is 3 years from the deemed date of allotment
Redemption
At the end of 3 years from the Deemed Date of Allotment
Click Here for more details on PFC Capital Gain Tax Exemption Bonds
Click Here for Application Form
REC Long term bond (under sec 54 EC)

Rural Electrification Corporation Ltd (REC Ltd) has come up with Non-Convertible Redeemable Bonds Series IX (2013-14) with benefits under sec 54 EC of the Income-tax Act 1961.
Who can invest?
An Individual / HUF / Partnership firms/ Insurance companies/ Banks/ Mutual Funds/ Provident funds & Super-Annuation Funds/RRB’s & FII’s.
Minimum Application size:
One Bond of Rs. 10000/-
Minimum & Maximum Investment:
Minimum of Rs. 10000/- & Maximum Investment upto Rs. 50/- lakhs
Rate of Interest
5.25 % p.a payable annually on 30th June.
TDS
No TDS on Interest
Mode of Holding:
Investors have an option of holding these bonds either in Demat or in Physical mode.
Redemption
Automatic Redemption after 3 years without surrendering bond certificate.
Click Here for more details on REC Long term bond
Click Here for Application Form
National Highways Authority of India (NHAI)

National Highways Authority of India (NHAI) bonds are 3 years tax-free bonds that qualify for income tax exemption. It is rated “AAA/Stable” by CRISIL and “AAA (ind) (Affirmed)” by Fitch Ratings.
Who can invest?
An Individual / HUF / Partnership firms/ Insurance companies/ Banks/ Mutual Funds/ Provident funds & Super-Annuation Funds/RRB’s & FII’s.
Minimum Application size:
One Bond of Rs. 10000/-
Minimum & Maximum Investment:
Minimum of Rs. 10000/- & Maximum Investment of Five Hundred Bonds of Rs. 10,000/- each (Rs. 50, 00,000) subject to fulfilment of other conditions as specified in Income Tax Act.
Rate of Interest
5.25 % p.a payable annually.
TDS
No TDS for Domestic Investors
Deemed Date of Allotment:
Last day of each month.
Maturity Period:
3 years from Deemed Date of Allotment.
Click Here for more details on NHAI Capital Gain Bonds
Click Here to download NHAI Forms