Investment window
Counted from the date of transfer. Do not wait until return filing.
Property sold? The clock has started.
Capital Gain Bonds, explained before the six-month window closes.
Application assistance for Section 85 Capital Gain Tax Exemption Bonds—still widely searched as 54EC Bonds—for investors in Jaipur, Bharatpur and across India.
RECPFCIRFCHUDCO6-month deadline₹50 lakh ceiling5-year lock-inTaxable interest
Eligible ceiling
Maximum exemption-linked investment, subject to applicable conditions.
Lock-in period
These bonds are designed for capital-gain exemption, not short-term liquidity.
Typical minimum
Usually one bond; verify the current information memorandum before applying.
Current market material commonly states 5.25% annual interest. Interest is taxable. Rate, availability, form, payment route and issue terms must be checked at the time of application.
Available issuer options
Four government-owned issuer brands to compare.
The tax benefit comes from meeting Section 85 conditions—not from choosing a particular logo. Compare only currently open issues and their official documents.
REC Limited
Formerly Rural Electrification Corporation Limited. A Maharatna central public-sector enterprise financing power and infrastructure.
Confirm current seriesPower Finance Corporation Limited
A Maharatna central public-sector financial institution focused on India’s power and infrastructure sectors.
Confirm current seriesIndian Railway Finance Corporation Limited
The dedicated financing arm supporting acquisition and development of assets for Indian Railways.
Confirm current seriesHousing and Urban Development Corporation Limited
A Navratna central public-sector enterprise financing housing and urban infrastructure development.
Series II from April 2026Availability note: issuer acceptance, application mode and allotment are governed by the respective information memorandum. NHAI has issued 54EC bonds historically, but it should not be shown as a current option unless an open issue is independently confirmed.
54EC or Section 85?
The search term changed less quickly than the law.
Common searchCurrent legal referenceWhat it means
54EC Capital Gain BondsSection 85 CGTE BondsSpecified bonds for eligible LTCG from transfer of land, building or both.
54EC bonds JaipurSection 85 bond assistance JaipurSame investor need; current issuer and tax documents should use the applicable terminology.
Who may qualify
Start with the asset and the date—not the bond rate.
The exemption generally applies when long-term capital gain arises from transferring land, a building, or both, and the eligible gain is invested in specified bonds within six months.
Confirm the asset
Residential property, commercial property, land or a building held long enough to qualify as a long-term capital asset.
Compute the capital gain
The exemption is linked to eligible capital gain—not automatically to the entire sale consideration.
Record the transfer date
The six-month deadline is critical. Prepare the application before the last few days.
Check liquidity
The invested amount remains locked for five years and the interest is taxable.
A simple illustration
If the eligible long-term gain is ₹40 lakh.
Eligible LTCG₹40 lakh
→Invested in specified bonds₹30 lakh
→Potential exemption₹30 lakh
The remaining ₹10 lakh gain may remain taxable. This is only an illustration; sale-date rules, acquisition cost, improvement cost, prior exemptions and tax rate require professional computation.
Application readiness
Keep the decision and documents moving together.
Sale details
Sale deed, transfer date and property details.
Tax computation
Capital-gain working confirmed with your CA or tax adviser.
KYC & bank
PAN, address proof, bank proof, photograph and contact details.
Issuer selection
Compare current REC, PFC, IRFC and HUDCO issue documents.
Local assistance
Capital Gain Bond support in Jaipur and Bharatpur.
Arvitha can help organise the application, confirm the issuer process and coordinate documentation. Your CA or tax adviser should confirm the capital-gain computation and exemption eligibility.
Frequently asked
Before choosing a bond.
They refer to the same broad capital-gain exemption route across the old and new section numbering. From 1 April 2026, the Income-tax Act, 2025 uses Section 85; “54EC bonds” remains the familiar search and market term.
REC, PFC, IRFC and HUDCO are specified issuer options. Compare only the current official issue documents, credit rating, interest, application route and servicing. The tax exemption conditions are more important than a brand preference.
No. The eligible capital gain may receive exemption when all conditions are met, but interest from the bonds is generally taxable according to the investor’s applicable tax treatment.
NRI eligibility, payment route, bank account and documentation must be checked in the current issuer information memorandum and with the investor’s tax adviser before applying.
Important: This page is educational and not tax, legal or investment advice. Tax law, issuer availability, interest rate and application terms may change. Read the current information memorandum and obtain advice from a qualified tax professional before investing.