New Bond notified for Sec 54EC exemption

Friday, May 9, 2025

New Bond notified for Sec 54EC exemption Income Tax has notified the bonds redeemable after 5 years issued by Housing and Urban Development Corporation Limited (HUDCO) as a “long-term specified asset” for the purposes of section 54EC. Sec 54EC provides tax exemption earned on long-term capital asset being immovable property (land or building or both). To claim exemption, taxpayer is required to invest gain amount (not exceeding 50 lacs) within 6 months of transfer of capital asset. Other notified bonds are National Highways Authority of India (NHAI), Rural Electrification Corporation (REC), Power Finance Corporation Limited (PFC) bonds, Indian Railway Finance Corporation (IRFC) Limited bonds.

The detailed notification is available at this link.

Insights