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HUDCO gets approval to Issue Capital Gain Tax Exemption Bonds

HUDCO granted to issue Capital Gain Tax Exemption Bonds

New Delhi, April 10 Housing and Urban Development Corporation Limited (HUDCO) a Navratna Public Sector Undertaking under the Ministry of Housing & Urban Affairs has been authorised notified to issue Capital Gain Tax Exemption Bonds under Section 54EC of the Income Tax Act 1961, w.e.f. 1st April, 2025 by the Central Board of Direct Taxes, Ministry of Finance, Government of India.

Capital gain arising from transfer of long-term capital asset, being land or building or both, shall be exempt, if the amount of such gain, subject to a maximum of Rs 50 lakh per investor, is invested in capital gain tax exemption bonds within 6 months from the date of transfer of such capital assets.

These bonds, when issued, will be redeemable after five years, providing long-term investors with an option to save on long term capital gains tax