54EC Bonds – Capital Gain Bonds

Invest your money in 54EC bonds and save tax on long-term capital gains from Vidhya Consultancy

54EC bonds which is also known as capital gains bonds, is the best method to save long-term capital gain tax. Investors who wants to earn interest on long-term capital gains and want tax exemption on these gains should invest in it. Deduction of tax is available under section 54EC of the Income Tax Act. 54EC bonds is meant for long term capital gain tax and not for short-term capital gains tax. The maximum limit for investing in 54EC bonds is Rs. 50 lacs. Vidhya Consultancy is the best place where you can invest in 54EC bonds to get benefits of tax deduction.

The Key Features Of 54EC Bonds

The list of features of 54EC Bonds are as follows:

Safe and Secure

54EC bonds are AAA rated. It is a safe and secure way to invest for long term capital gains.

Investment Amount

Minimum investment in 54EC bonds is 1 bond amounting to Rs. 10K and the maximum investment in 54EC bonds is 500 bonds amounting to Rs. 50 lacs in a financial year.


Interest on 54EC bonds is taxable. No TDS is deducted on interest from 54EC bonds and wealth tax is exempted. 54EC bonds offer 5.75% rate of interest payable annually.


54EC bonds come with a lock-in period of 5 years and are non-transferable.

Key Benefits of 54EC Bonds

Take a look at the benefits of investing in 54EC bonds:

Save Tax:

Long-term capital gains from investments in 54EC bonds or sale of 54EC bonds can be reinvested in order to save tax.


54EC bonds are backed by the government, hence the risk factor associated with buying 54EC bonds is mitigated.

Earn & Save:

Investing in 54EC bonds allows you to save tax while earning interest income from the 54EC bonds.

User Preferance:

54EC Bonds can be held in either demat or physical form.

Documents required for 54EC Bonds:

The documents which you will have to submit to buy 54EC bonds are as follows-

  • PAN Card
  • Address Proof
  • One Cancelled Cheque

So, stop thinking and visit Vidhya Consultancy as soon as possible to invest your money in 54EC Bonds.