How you can avoid paying Capital Gain Tax – Invest in NHAI’s 54EC Capital Gains Bonds

Capital gain arising out of sale of Long term assets such as land, building etc can be invested in capital gain bonds issued by NHAI up to 50 lakh per annum within 6 month of the transfer of the capital long term asset. This investment is open for all assessee and only the capital gain amount to be invested not the whole of the net proceed from sale /transfer of the capital asset. Capital Gain Tax exemption is available under Section 54EC of the Income Tax Act.


The following table shows the full details
Credit Rating “AAA/Stable” by CRISIL and “ AAA(ind)(Affirmed)” by Fitch Ratings
Face Value Rs. 10000/- per Bond
Issue price Rs. 10000/- per Bond
Minimum application size One Bond of Rs. 10,000/-
Maximum application size Five Hundred Bonds of Rs. 10,000/- each (Rs. 50,00,000 ) subject to fulfillment of other conditions as specified in Income Tax Act.
Mode of Subscription 100% on application
Deemed Date of Allotment Last day of each month for application money cleared and credited in NHAI’s collection account
Transferability The Bond are non-transferable, non-negotiable and cannot be Offered as a security for any loan or advance
Maturity 3 years from Deemed Date of Allotment
Interest payment Annual
Coupon rate 6% annually
Redemption Bullet, at the time of Maturity after 3 years
Trustee Syndicate Bank, 6, Bhagwan Dass Road, New Delhi-01
Availability of the prospectus and application form Across the country with Union Bank of India/IDBI Bank and Selected Branches of other Bank as details in IM,NHAI Offices, Selected SEBI Registered Category-I Merchant Bankers
Bankers All the Branches of Union Bank of India/IDBI Bank & Selected branches of HDFC Bank, Canara Bank, Punjab National Bank & Syndicate Bank. For details of bank branches please refer Information Memorandum (IM).
Ceiling Rs.1900 Crore
Date of Allotment At the last day of every month
Date of Start 01.04.2011
Date of Closure 31.03.2012
Applicable Laws Income Tax Act 1961 and NHAI Act
Registrar M/s Beetal Finacial & Computer Services (P) Ltd, "Beetal House",3rd Floor, 99, Madangir,Behind Local Shopping Centre, New Delhi-110062 , ph. 011-29961281-83, Fax - 011-29961284,Email- nhaibonds@gmail.com
TDS No TDS from domestic investors