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NHAI Bonds

Aman Shetty (9 Points)

22 August 2019

is interest on Nhai bonds tax-free?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180116 Points)
Replied 22 August 2019

Interest on NHAI capital gains bond is taxable.

But NHAI issued Tax Free Bonds for subscripttion in February 2016, interest on the same was tax free.

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Aman Shetty (9 Points)
Replied 22 August 2019

But NHAI is a tax free bond right? Can you explain me the difference between taxfree and CG bond?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180116 Points)
Replied 22 August 2019

If you earned any Long Term capital gain by sale of any immovable property, and wish to save the capital gain u/s. 54EC of IT act, you have to invest it in capital gains bonds, and interest paid over it at 5.25% PA is taxable.

Sometimes, these companies like NTPC (National Thermal Power Corp), PFC (Power Finance Corporation), REC, NHAI, IRFC, IRDEA etc issue Tax Free Bond, in which the capital gains benefit is not available; but as name suggest the interest earned on it is tax-free.