These Capital Gain bonds can be purchased directly the NHAI/REC or from registered bond dealers. There is no way to buy these bonds online, so you’ll have to go to their office and fill out a paper form.
How do I apply for tax-free bonds from the NHAI?
What is the procedure for purchasing NHAI bonds?
- Make a check or demand draft in the name of the “National Highway Authority of India” with the words “Account payee only” struck off.
In 2021, how do you get an NHAI bond?
The latest primary issuance of tax-free bonds was by the Government of India in 2015, and there have been no additional issues since then.
As a result, investors are practically limited to purchasing these bonds only on the secondary market. As a result, they can be traded on the NSE/BSE.
Any retail investor with a current trading/Demat account can purchase the bond from the exchange like an equity stock, depending on availability.
- When a corporation distributes bonds to the general public, investors can apply online or offline to subscribe.
You’ll need to submit an updated application form, either online or offline, together with the necessary papers and a check or demand draft for the amount you want to invest.
More than 20 nationalized banks can assist you in purchasing these bonds.
You will receive the bond and the Certificate of Holding in your BLA (Bond Ledger Account) once you have invested.
- The stock market is where investors can buy and sell these bonds. However, while the interest on these bonds is tax-free, any capital gain from a secondary market sale is.
Short-term capital gains (STCGs) from the selling of tax-free bonds on exchanges are taxed at the regular rate.
Long-Term Capital Gains (LTCGs) are taxed at a rate of 10% without indexation (i.e. indexation is a mechanism employed by investors to avoid tax loss on investments) or 20% with indexation, whichever is lower.
Is it possible for me to purchase tax-free bonds?
Because these bonds are backed by government-owned organizations, they are extremely safe. Some of the above-mentioned bonds have a long maturity period. You can sell these bonds on stock markets in the same way that you can buy them. However, it is important to keep in mind that trade volumes may be low in some circumstances. For example, if you want to buy 1,000 bonds at a specific price, it’s possible that they won’t be accessible. They may not be traded at all in other instances. We recommend that you look for ones that are nearing maturity. By no means is the list of tax-free bonds we’ve supplied above exhaustive. Apart from tax-free bonds, there are the PPF and ULIPs, which offer tax-free interest and returns, respectively. Of course, we have the EPF and the VPF, where the interest earned is tax-free in the hands of investors after a 5-year period of continuous labor.
Is the NHAI bond tax exempt?
“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.
What is the procedure for purchasing IRFC tax-free bonds?
What is the procedure for purchasing IRFC bonds?
- Draw a check in the name of IRFC Capital Gain Bonds along with the IRFC bond application form.
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.
What is the procedure for obtaining an NHAI bond certificate?
Print the Application Form on a sheet of A4 paper. 1] Self-attested photocopies of the applicant’s PAN card and address proof. 2] One copy of a cancelled cheque (For interest/maturity payment via ECS/RTGS/NEFT.)
Who is eligible to invest in NHAI bonds?
Capital gains tax exemption bonds are also known as 54EC bonds because they provide tax relief under section 54 EC of the Internal Revenue Code. These bonds are available to investors who have made long-term financial gains from land, buildings, or both and want to avoid paying taxes on them. Bonds offered by the Rural Electrification Corporation Ltd (REC) and the National Highways Authority of India are among the qualified bonds under section 54EC (NHAI). The maximum amount you can invest in 54EC bonds is $50,000.
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.