Yes, there are specific bonds available under the Income Tax Act that allow you to invest your capital gains and claim tax relief. One of the primary avenues is provided under Section 54EC of the Act. How It Works: Section 54EC Bonds:If you have incurred capital gains from the sale of an asset, youRead more
Yes, there are specific bonds available under the Income Tax Act that allow you to invest your capital gains and claim tax relief. One of the primary avenues is provided under Section 54EC of the Act.
How It Works:
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Section 54EC Bonds:
If you have incurred capital gains from the sale of an asset, you can invest those gains in specified bonds—such as those issued by the National Highways Authority of India (NHAI) or the Rural Electrification Corporation (REC). -
Tax Exemption:
By investing in these bonds, you can claim an exemption from capital gains tax on the invested amount, up to a certain limit (currently ₹50 lakh per financial year). -
Holding Period:
These bonds are non-convertible and must be held for a minimum period, usually three years, to avail the tax benefit.
Key Points to Remember:
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Investment Limit:
The exemption is available up to the prescribed limit per financial year. -
Purpose:
This measure encourages the flow of capital into infrastructure and other government-promoted sectors. -
No Other Eligible Bonds:
While Section 54EC is the most common route for capital gains bonds, always review the latest provisions, as tax laws can evolve.
By investing your capital gains in these bonds, not only do you help fund critical infrastructure projects, but you also reduce your tax liability. This strategy can be an effective way to manage your taxes while supporting national development initiatives.
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The service of operating mini AC buses would classify under Heading No. 9966 & taxable at 12% Service of operating mini AC buses by applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempt from payment of GST. It is covered under Heading No. 9966 i.e. 'servRead more
The service of operating mini AC buses would classify under Heading No. 9966 & taxable at 12%
Service of operating mini AC buses by applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempt from payment of GST.
It is covered under Heading No. 9966 i.e. ‘services by way of giving on hire to a state transport undertaking a motor vehicle meant to carry more than twelve passengers’ in terms of Notification No. 12/2017-CT(R), dated 28-6-2017.
Said case is clearly covered by Sl. No. 10 of Notification No. 11/2017-CT (Rate), dated 28-6-2017 in as much as there is a Rental services of transport vehicles with or without operators and therefore for period up to 13-10-2017, applicant’s activity would attract GST at rate of 18 per cent and after Sl. No. 10 has been amended w.e.f. 13-10-2017, applicant will have to pay GST at rate of 12 per cent
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