https://v2.webnotes.in/tags/54ec-bonds/Recent content in 54EC Bonds on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/54ec-bonds-zerodha/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/54ec-bonds-zerodha/<p><strong>Section 54EC bonds</strong> (REC, PFC, NHAI) allow investors to claim <strong>exemption from LTCG on land/building sale</strong> by investing the gains in these bonds within 6 months.</p> <h2 id="key-features">Key features</h2> <ul> <li><strong>Tenor</strong>: 5 years (locked-in).</li> <li><strong>Coupon</strong>: ~5.25% (subject to current issue terms).</li> <li><strong>Maximum</strong>: Rs 50 lakh per FY.</li> <li><strong>Eligibility</strong>: Only LTCG from sale of land / building.</li> <li><strong>Issuers</strong>: REC Limited, Power Finance Corporation (PFC), NHAI.</li> </ul> <h2 id="how-to-invest-via-zerodha">How to invest via Zerodha</h2> <ol> <li>Sell land / building, realising LTCG.</li> <li>Within 6 months of sale: Invest gain in 54EC bonds via Zerodha bonds platform.</li> <li>Submit Form ITR claiming Section 54EC exemption.</li> <li>Hold for 5 years.</li> </ol> <h2 id="compliance">Compliance</h2> <ul> <li>Investment within <strong>6 months</strong> of asset sale.</li> <li>Maximum <strong>Rs 50 lakh per FY</strong>.</li> <li>Maximum Rs 50 lakh across two FYs (for sales near year-end).</li> <li>Lock-in 5 years.</li> <li>Premature withdrawal forfeits the exemption.</li> </ul> <h2 id="tax-on-coupons">Tax on coupons</h2> <p>Coupons taxed at slab rate as interest income.</p>