Capital Gain Bonds

54EC Capital Gain Bonds are a type of investment instrument in India that offer tax exemption on long-term capital gains. These bonds are issued by the government-owned entities, such as Rural Electrification Corporation (REC) and National Highways Authority of India (NHAI).

They are typically used by individuals or Hindu Undivided Families (HUFs) who have earned long-term capital gains from the sale of a property, land or any other asset and want to avoid paying capital gains tax on the same.

Investing in these bonds not only offers tax benefits but also provides a fixed return on investment for the entire tenure. These bonds are usually considered a safe investment option, backed by the government, making them a popular choice among investors looking to save on taxes and generate stable returns.

** Get 5.25% interest

The benefits of 54EC Capital Gain Bonds in India are as follows:

Tax Exemption

One of the main benefits of investing in 54EC Capital Gain Bonds is that it offers tax exemption on long-term capital gains.

Fixed Returns

The bonds provide a fixed return on investment, which makes it a safe and reliable investment option.

Safe Investment

54EC Capital Gain Bonds are issued by government-owned entities, which makes them a safe investment option backed by the government.


Investing in these bonds can provide diversification to an investor's portfolio by spreading the investment across different sectors like infrastructure, power, and highways.

Invest in bonds is a hassle-free process.