If the assessee takes a bank loan by mortgaging the bond, then amount of capital gain of rs. 10 lacs will arise only. 

In my opinion, Only 10 Lacs.

However, if he does not utilise any amount or part thereor within 3 yrs from the date of Transfer of property, then entire Exemption taken will be deemed to be income of that Year and taxed accordingly.

REC / NHAI 54EC Capital Gains Tax Exemption Bonds -2011-2012 Application Form

For More Details and investment

visit on www.lifins.in or  call on 9822403407

- Lifins Financial, Pune, Maharashtra, India.

A] Rural Electrification Corporation (REC)

About Company:

Rural Electrification Corporation (REC), was incorporated on July 25, 1969 under the Companies Act 1956. REC is a wholly owned Government of India Public Sector Enterprise with a net worth of over Rs. 11104.25 Crore as on 31-03-2010. Its main objective is to finance and promote rural electrification projects all over the country besides providing assistance for generation projects, transmission and distribution projects. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.

B] National Highways Authority of India (NHAI)

About Company:

The National Highways Authority of India was constituted by an act of Parliament, the National Highways Authority of India Act, 1988. It is responsible for the development, maintenance and management of National Highways entrusted to it and for matters connected or incidental thereto. The Authority was operationalized in February, 1995 with the appointment of full time Chairman and other Members. 

National Highways Authority of India (NHAI) is mandated to implement National Highways Development Project (NHDP) which is

·         India 's Largest ever highways project

·         World class roads with uninterrupted traffic flow

The National Highways have a total length of 70934 km to serve as the arterial network of the country. The development of National Highways is the responsibility of the Government of India.

Salient Features:

v  Interest payment: Annual

v  Coupon rate : 6.00% payable annually.

v  Interest Payment: Payable on 31st March

v  Maturity:  3 years from Deemed Date of Allotment

v  Redemption: Bullet, at the time of Maturity after 3 years

v  Credit Rating : “ AAA/Stable” by CRISIL and “ AAA(ind)(Affirmed)” by Fitch Ratings

v  Face Value:  Rs. 10000/- per Bond

v  Issue price : Rs. 10000/- per Bond

v  Minimum application size : 1 Bond of Rs. 10,000/-

v  Maximum application size: 500 Bonds of Rs. 10,000/- each

v  subject to fulfilment of other conditions as specified in Income Tax Act.

v  Mode of Subscripttion:   100% on application

v  Deemed Date of Allotment:  Last day of each month for application money cleared and credited in collection account.

v  Transferability:  The Bonds are non-transferable, non-negotiable and cannot be

v  Offered as a security for any loan or advance

v  Date of Allotment : At the last day of every month

v  Date of Start:  01.04.2011

v  Date of Closure:  31.03.2012

v  Applicable Laws:  Income Tax Act 1961

v  Mode of payment: by A/c Payee cheques or DDs.

The following persons and institutions can apply for these bonds:

 Individual/ HUF/ Charitable Institute / University/ Company/ Mutual Funds/ Firms / NRI / Co-operative / NRI / Financial Institute

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For More Details and investment

visit on www.lifins.in  or  call on 9822403407

- Lifins Financial, Pune, Maharashtra, India.

agree with S