New Delhi: In sync with the declining rates in the economy, NHAI and REC have cut the interest rate on their capital gains bonds from 5.75% to 5% from 1st August. The lower rate will only apply to fresh bonds where payment by the concerned institution has been received after 1st August 2020. The reduction will not apply on existing bonds.
Investment in NHAI and REC up to ₹50 lakh offers a deduction from capital gains tax under Section 54 EC of the Income Tax Act. Such investment has to be made within six months of the transfer of the capital asset.
“For any due date falling from 20th March to 29th September, the finance ministry has extended it to 30th September on account of the Covid 19 pandemic,” said Prakash Hegde, a Bengaluru based Chartered Accountant. For example, if you sold your house on 15 December and had your 6 month due date in mid-June, this would get extended to 30 Septembe . The interest on the bonds is taxable at your slab rate. The bonds have a lock-in period of 5 years.
