How investing in 54EC bonds can help you save tax on long-term gains

REC (formerly Rural Electrification Corporation) launched a new series (XVI) of 54EC Capital Gains Tax Exemption bonds on April 1. Investing in these bonds allows a person to claim tax exemption under Section 54EC on long-term capital gains arising from the transfer of a tract of land or building. The National Highways Authority of India will not issue these bonds.

Save on tax

When you register long-term capital gains by selling property held for at least two years, you have to pay tax on your gains. One way you can avoid paying tax is by investing an amount equivalent to the long-term