Tax-saving bonds are great instruments offered by the government to help people save tax. These are special documents which offer tax benefits to the owners.

54EC Bonds

54EC capital gains bonds, are one of the best way to save long-term capital gain tax.

54EC bonds are tax exemption on these gains. Tax deduction is available under section 54EC of the Income Tax Act. 54EC bonds do not allow any tax exemption on short-term capital gains tax. Invest in 54EC bonds to get benefits of tax deduction. The maximum limit for investing in 54EC bonds is Rs. 50,00,000. ( 5 years lock in 5% - at present _ time to time change)

The eligible bonds under Section 54EC

Features And Benefits Of Tax-Free Bonds 

Have a look at the features and benefits of tax-free bonds before you start investing: