Capital GainsDeductionsHouse Property

Key Features of NHAI Bonds for Section 54EC Exemption



A person can claim an exemption under Section 54EC from the long-term capital gains arising from the transfer of land or building after two years of purchase. This exemption is available if a person invests the gains in bonds of NHAI or REC.

Key Features of NHAI Bonds

[54EC Capital Gains Bonds of NHAI for the year 2019-20]

1. Credit Rating

These bonds are rated as CARE AAA/Stable, CRISIL AAA/Stable & IND AAA/Stable.

2. Issue Price

These bonds are issued at their face value of Rs. 10,000 per bond.

3. Application Size

The application can be filed for minimum 1 bond and for maximum 500 bonds. The size of the application shall be seen in the financial year itself in which the original asset is transferred and in the subsequent financial year. Application once submitted cannot be withdrawn.

4. Deemed date of allotment

Last day of the month during which the application amount has been cleared and credited to NHAI’s collection account.

5. Maturity

The bonds shall be matured at par at the end of the 5th year from the deemed date of allotment. During the tenure, these bonds are non-transferable, non-negotiable and cannot be offered as a security for any loan or advance.

6. Interest

The coupon rate is 5.75% which is payable annually on 1st April and final interest at the time of maturity. Interest earned from these bonds is taxable, however, no tax is deducted therefrom. However, the tax will be deducted if interest is payable to non-resident investors.

7. Collecting Banks

The application can be submitted in specified branches of following banks:

  • Union Bank of India
  • HDFC Bank
  • Axis Bank
  • Canara Bank
  • ICICI Bank
  • IDBI Bank
  • Syndicate Bank

8. Documents to be submitted

The PAN No. of the applicant should be mentioned in the Application Form. A self-certified copy of PAN card, Aadhar card and certified copy of address proof of Applicant and one cancelled Cheque should be submitted along with application form.

9. Closure of issue

The issue will close on March 31, 2020 or on achieving of ceiling limit of Rs. 5,000 crore.

Exempt capital gains by investing in residential house property – Section 54 and 54F

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