NCDs are a one-stop solution for investors looking for a fixed and high-interest rate for a specified period of time. It carries low risk which can be managed by investing in NCDs of companies with a high ratings.
Transforming distribution and marketing with key capabilities in customer insight and analytics.
Transforming distribution and marketing with key capabilities in customer insight and analytics.
A capital bond is a fixed return instrument. You invest in a bond with a face value and you are paid interest on the face value of the bond. The face value is what you get when you redeem the bonds. Bonds have to pay the interest on time at regular intervals and the redemption of the bond has to done promptly once the bond matures.
A taxpayer can invest a maximum of Rs.50 lakh of capital gains incurred in these bonds. As per the issuers of 54EC bonds (NHAI, REC, PFC) the interest rate offered is 5.25% which is payable annually.
The lock-in period for capital gain bonds is 5 years.
54EC bonds are specifically meant for investors earning long-term capital gains and would like tax exemption on these gains.
The maximum limit for investing in 54EC bonds is 50 lakh per financial year and minimum investment is 20 lakh and 10 lakh.