What are 54EC bonds and how can I invest in them?

Ayushchandak06 May, 2022Finance

54EC bonds are capital gain bonds that help in reducing the amount of tax one needs to pay towards his capital gains. These fixed income instruments provide capital gain tax exemption under Section 54EC to the bondholder. An investor can reduce his tax liability on long-term capital gains derived from the sale of an asset (land or building) that he has held for more than two years. Investors can invest this gain in 54EC bonds within six months of the date of the sale of the immovable property to claim tax exemption.