On maturity, NHAI will immediately redeem the bonds without the need to surrender the Bond Certificate(s), and the proceeds will be paid by cheque or NECS/ECS. If you do not have a demat account, you will receive a tangible bond certificate similar to what you would receive with a fixed deposit.
Is it possible to redeem NHAI bonds before they expire?
*In January 2019, I sold my flat and in July 2019, I invested in NHAI bonds under Section 54EC. Is it possible for me to make a premature withdrawal and purchase a new apartment?
Section 54EC states that if a taxpayer invests his long-term capital gains in certain bonds (such as NHAI bonds), the amount of capital gains is exempt up to a monetary limit of Rs 50 lakh. The amount of capital gains arising from the transfer of original assets that were not charged to tax will be deemed to be the long-term capital gains of the previous year in which specified assets are transferred and will thus be brought to tax.
How do I get my 54EC bond back?
In addition, if a taxpayer is unable to invest the amount of capital gain in the year of transfer, he may deposit it in the Capital Gain Account plan before the ITR reporting deadline. The cash deposited, on the other hand, will be taxed if it is not invested in another property within the time limit.
Furthermore, under Section 54EC, you can invest up to Rs 50 lakh in long-term specified bonds, such as those issued by NHAI and REC, within six months after the transfer date. Such bonds are not redeemable until five years after the date of transfer.
Q2. My company withdrew provident fund every month and deposited it to EPFO when I worked in India for two years. My PF account was suspended and no contributions were made after the third year since I was on an overseas assignment. Can I withdraw the entire PF sum if I return to India and become unemployed? Is it taxable? V.Manoharan
You can take 75% of your PF balance within one month after quitting a job, and the remaining 25% after two months of unemployed. Furthermore, if you leave before you’ve completed five years of continuous service, you’ll have to pay taxes on the money you take out. According to our knowledge, you meet all of the above-mentioned requirements for EPF withdrawal. This sum, however, will be taxable.
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Q3. I submitted an ITR4 before July 31, but have yet to receive a final order. When can I expect to receive the final assessment? Gautam Kumar is an Indian businessman.
Intimation must be received within one year after the end of the financial year in which the return is filed, according to section 143(1) of the Income-tax Act, 1961. If you submitted your return on July 31, 2018, the final assessment should arrive by March 31, 2020.
Is it taxed to redeem NHAI bonds?
It should be emphasized that interest is not tax-free, and tax on interest must be paid according to the taxpayer’s income tax bracket. As a result, Capital Gains Tax is only applied to the amount invested. Income tax applies to the interest earned on these bonds.
Is the interest on NHAI bonds taxable?
“For any due date between March 20 and September 29, the finance ministry has prolonged it to September 30 due to the Covid 19 pandemic,” said Prakash Hegde, a chartered accountant in Bengaluru. For example, if you sold your home on December 15th and your 6-month due date was in mid-June, your payment would be delayed until September 30th. The bond interest is taxed at your slab rate. The bonds have a 5-year lock-in duration.
Can we borrow against NHAI bonds?
Is it possible to take out loans on my REC and NHAI bonds? (specified assets) Yes, you can take out loans against these assets as collateral, but you won’t be able to claim the exemption under section 54EC of the Act, and your Long Term Capital Gains will be taxed in the year you take out the loans.
NHAI or REC: which bond is better?
REC bonds have a somewhat higher rating than NHAI bonds. Because NHAI bondholders must request for surrender of bonds at maturity, which is after 5 years, and only then is the maturity amount redeemed and paid by cheque or ECS. It will be automatically redeemed and paid by check or ECS in the case of REC bonds.
When NHAI bonds reach maturity, how can I redeem them?
The Bonds will be fully redeemed at par when they reach maturity. Payment of redemption proceeds will be made in the name of the First Applicant (in the case of a joint application) / Sole Applicant and in accordance with the bank account information supplied in the application.
What exactly is 54EC?
Capital gain bonds, also known as 54EC bonds, are fixed income products that give investors with a capital gains tax exemption under section 54EC. By purchasing 54EC bonds, you can minimize your tax burden on long-term capital gains from the sale of immovable property.
The issuer’s debtholders or creditors are the bond’s owners. Infrastructure corporations that are backed by the government issue these bonds. As a result, by purchasing such bonds, the risk factor is reduced. The capital gain bonds can be redeemed at any time before they reach maturity. These bonds cannot be sold since they are not traded on a stock exchange. The interest rate has been cut to 5% p.a. from 6% p.a. and is fully taxable in your hands.
Can 54EC bonds be redeemed?
Exemption under Section 54EC is being revoked. If the long-term specified asset is transferred or converted into money before the end of the three-year or five-year period, as the case may be, the exemption claimed under section 54EC will be revoked.
Are the NHAI bonds secure?
CRISIL and CARE, two important Indian rating agencies, have given the NHAI bonds a AAA grade. AAA is the highest rating that a major rating agency can bestow on a bond offering. As a result of the ratings provided by the agencies, these bonds are considered safe to invest in.