Capital Gain Bonds
By purchasing 54EC capital gain bonds, investors can take advantage of the capital gain tax exemption provided by Section 54EC of the Income Tax Act of 1961. If investors buy these bonds within six months of selling an immovable property, they can avoid paying long-term capital gains taxes on those earnings. For 54EC bonds, the annual maximum investment limit is Rs 50,000,000. The interest rate on these bonds has been raised to 5.25% annually beginning of April 1, 2023. It is significant to remember that these bonds' interest earnings are subject to income tax.
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