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Government has reduced coupon rate on long-term Capital Gain Tax Exemption Bonds under the Income Tax Act 1961 with effect from December 1, 2016.
National Highways Authority of India (NHAI) has been issuing these tax-saving bonds for quite some time now.
The coupon rate on 54 EC Bonds has been reduced to 5.25 per cent per annum, from 6 per cent, the Ministry of Road Transport and Highways said today.
"Application money to be credited in NHAI's collection accounts on or after December 1, 2016 will be 5.25 per cent per annum till maturity of bonds," it added.
The application money to be credited in NHAI's collection accounts on or before November 30, 2016, will remain 6 per cent per annum till maturity of bonds.
"Therefore, the Information Memorandum (IM) dated April 7, 2016, Application Form and the Bond Certificate stand amended to the extent of interest rate/coupon rate as above," the ministry said.