Should you invest in capital gain bonds after selling your property?

Is it better to invest in the Section 54EC bonds issued by Rural Electrification Corporation (REC), Power Finance Corporation (PFC) and the Indian Railways Finance Corporation (IRFC) for saving long-term capital gains tax on sale of property than paying the tax upfront and deploy the remaining amount in other equity-based investments? - Anil Misra When you sell a property, the gains are taxed at 20 per cent after indexation if you hold it for more than two years. However, Section 54EC of the Income Tax Act allows a deduction of up to Rs 50 lakh from the profit if invested in capital gain bonds within six months from the day you sell your property. This means putting your money in such bonds can save you up to Rs 10 lakh on taxes (20 per cent of Rs 50 lakh). What are capital g

This article was originally published on January 04, 2024.