Capital gain bonds are special financial instruments issued by the government of India to provide a tax-saving investment option for taxpayers who have earned long-term capital gains. These bonds are issued by government-approved entities and offer tax benefits under Section 54EC of the Income Tax Act. In this article, we will guide you through the process of buying capital gain bonds online.
Choose the Bond Issuer The first step in buying capital gain bonds online is to choose the issuer. Currently, there are three government-approved entities that issue capital gain bonds in India – Rural Electrification Corporation (REC), National Highways Authority of India (NHAI), and Indian Railway Finance Corporation (IRFC).
Check Bond Availability and Issue Price Once you have selected the issuer, you need to check the availability of the bond and the issue price. The issue price is fixed by the issuer and is usually around Rs. 10,000 per bond. You can check the availability and issue price of the bond on the respective issuer’s website.
Check the Eligibility Criteria Before buying the capital gain bonds, you must check the eligibility criteria. To be eligible for these bonds, you should have earned long-term capital gains from the sale of any asset, such as a property or stocks. You should also be an Indian resident and not be an NRI.
Fill in the Application Form Once you have checked the bond availability, issue price, and eligibility criteria, you can proceed to fill in the application form. You can download the application form from the respective issuer’s website or get it from their offices.
Make the Payment After filling in the application form, you need to make the payment for the bonds. You can pay for the bonds through various modes, such as net banking, debit card, credit card, or UPI. The payment details and instructions are given on the issuer’s website.
Receive the Bonds After making the payment, you will receive the capital gain bonds in electronic form. The bonds will be credited to your demat account, and you will receive a confirmation email from the issuer.
In conclusion, buying capital gain bonds online is a simple and convenient process. You can choose the issuer, check the availability and issue price, fill in the application form, make the payment, and receive the bonds in your demat account. These bonds offer tax-saving benefits, making them a popular investment option among taxpayers.