How do I redeem REC bonds after maturity?

How do I redeem REC bonds after maturity?

For bond(s) held in physical Form: The Bonds will be automatically redeemed by NHAI on maturity, without the surrender of Bond Certificate(s) by the Bondholder(s), on the expiry of 3 years from the deemed date of allotment and the redemption proceeds would be paid by cheque or NECS/ECS to the Bondholder whose name …

Are REC bonds tax free?

The eligible bonds under section 54EC include bonds on offer by Rural Electrification Corporation Ltd (REC) and National Highways Authority of India (NHAI). Interest earned from 54EC bonds is taxable; however, no TDS is deducted on interest.

How do I redeem REC bonds?

Bonds will be automatically redeemed by REC on maturity, without the surrender of Bond Certificate(s) and the proceeds would be paid by cheque or NECS/ECS. Demat account is not mandatory, if you don’t have demat a/c, then you will receive physical bond certificate like your Fixed Deposit.

Is REC bonds taxable on maturity?

It should be noted that the interest is not tax free and tax on interest would be liable to be paid as per the income tax slabs of the taxpayer. Thus, only the amount invested is exempted from Capital Gains Tax. The Interest that is earned on these bonds is liable to income tax.

How can I buy 54 EC bonds?

Step 1

  1. Click the “Fill a New Form online” button for the bond issuer you prefer.
  2. Fill the application form online and submit.
  3. You will get an SMS on successful application submission.
  4. Download the duly filled application form.
  5. Take a print out of the above form and attest the signatures by all applicant(s).

Can NHAI bonds be redeemed before maturity?

The NHAI /REC bond can be fully redeemed at maturity after three years. Also, it is a non-negotiable financial instrument, hence one should not expect to get money by keeping the bond as a security against any loan or advance, since this is not permitted.

Who can invest in 54 EC bonds?

Individuals as well as members of HUF can make investments in 54EC bonds. You should invest in 54EC bonds within 6 months of transferring capital asset.

What is Section 10 15 of Income Tax Act?

Interest Income exempted under section 10(15) of Income Tax Act, 1961. Interest income or premium on redemption or other payments on notified securities; bonds; annuity certificates; savings and other certificates. Interest income on notified Relief Bonds. The exemption is available only to Individual and HUF.

How do I close a capital gain account after 3 years?

To close the Capital Gains Account, an application in Form G is required to be made. In case of the death of the depositor, such application would be required to be made by the nominee/legal heirs in Form H.

Which capital gain bond is best?

54EC bonds
54EC bonds, or capital gains bonds, are one of the best way to save long-term capital gain tax. 54EC bonds are specifically meant for investors earning long-term capital gains and would like tax exemption on these gains. Tax deduction is available under section 54EC of the Income Tax Act.

Is interest from NHAI bonds taxable?

The interest on the bonds is taxable at your slab rate. The bonds have a lock-in period of 5 years.