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Indian Railway Finance Corporation Ltd. IRFC Capital Gain Tax Exemption Bonds –Series IV

Indian Railway Finance Corporation Limited has Issued Tax bonds for Capital Gain Exemption for Financial Year 2020-21. IRFC Capital Gain Tax Exemption Bonds – Series IV

Indian Railway Finance Corporation Ltd. IRFC Capital Gain Tax Exemption Bonds –Series IV

Do you know:

Q1. Who can claim exemption under section 54EC?

Ans. Any Person

Q2. Whether Short Term Capital Asset or Long-Term Capital Asset is eligible for Exemption?

Ans. Long-Term Capital Asset.

Q3. Which specific asset is eligible for exemption?

Ans. Any Long-Term capital asset (being land or building or both)

Q4. Which asset should the taxpayer acquire to avail the benefits of section 54EC?

Ans. Following are the Tax Exemptions bonds available under section 54EC, the taxpayer can acquire any of them or any combination of them to avail the benefits of section 54EC.

  • National Highways Authority of India
  • Rural Electrification Corporation
  • Power Finance Corporation Limited (as notified)
  • Indian Railway Finance Corporation Limited (as notified)

Q5. What is the time limit for acquiring such new asset under section 54EC?

Ans. Within 6 months from the date of transfer of Long-Term capital asset but in case of compulsory acquisition from the date of receipt of compensation.

Q6. What is the quantum of Exemption u/s 54EC?

Ans. The amount of investment made in the new asset or capital gain, whichever is lower.

Q7. Can exemption claimed u/s 54EC be revoke in a subsequent year?

Ans. Yes, if the new asset is transferred or it is converted into money or a loan is taken on security of the new asset within 5 years of its acquisition.

Q8. What would be consequences if the exemption is revoked?

Ans. It is going to be taxable in the year in which the default is committed considering it as a long-term capital gain.

About the IRFC Capital Gain Tax Exemption Bonds –Series IV

  • Private Placement of Secured
  • Non-Cumulative
  • Redeemable
  • Taxable Bonds in the nature of Debentures of Rs.10,000/- each for cash at Par on the “ON TAP” basis with benefits under section 54EC of the Income Tax Act, 1961.

Indian Railway Finance Corporation Ltd. Capital Gain Tax Exemption Bonds –Series IV Issue Highlights      

Security Name/ BondsIRFC Capital Gain Tax Exemption Bonds –Series IV
Credit Rating(a) ‘AAA/Stable’ by CRISIL
(b) ‘AAA (Stable)’ by ICRA &
(c) ‘AAA/Stable’ by CARE
Size of the IssueRs 1000 crore with Green Shoe option to retain oversubscription
Face Value of BondsRs. 10,000 (Rupees Ten Thousand only) per bond
Issue Price of BondsAt par (Rs. 10,000/- per bond)
Coupon Rate of Bonds5.75% per annum.
Issue Opening & Closing DateIssue Opening Date: April 1, 2020
Issue Closing Date: March 31, 2021
(at the close of the banking hours) or at a date/time as may be decided by Indian Railway Finance Corporation Ltd. in its absolute discretion
Minimum application size and in multiple of thereafterThe applicant has to apply for a minimum size of Rs. 20,000/- (2 bonds) and thereafter in multiple of Rs. 10,000/- (1 bond).
Maximum application sizeThe applicant can apply a maximum of 500 bonds of Rs. 10,000/- each (Rs. 50,00,000/-)
Mode of IssuePrivate placement basis
Mode of SubscriptionApplicants may make remittance of application money through electronic mode or cheque/draft drawn in favor of “IRFC CAPITAL GAIN BONDS”
Deemed Date of allotmentLast day of each month in which the subscription money is received and credited to Indian Railway Finance Corporation Ltd. Capital Gain Collection Account
Coupon payment dateEvery year on 15th October till redemption and balance along with Redemption
Tenor5 years from the deemed date of allotment of such bonds
Date of RedemptionAt the end of 5 years from the Deemed Date of Allotment of such bonds
TransferabilityNon-transferable, Non-Marketable, Non-negotiable and cannot be offered as a security for any loan or advance
ListingThe Bonds will not be listed on any stock exchange due to non-transferability during the tenure of Bonds
TrusteesSBI CAP TRUSTEE LTD.
Bankers to IssueHDFC Bank Ltd, ICICI Bank Ltd., IDBI BANK LTD, SBI, AXIS BANK, and Canara Bank (for Designated Branches visit at www.irfc.nic.in)

Notes:

1. Indian Railway Finance Corporation Ltd. reserves the right to revise the coupon rate and/or close the issue by giving notice on its website. The investors are advised to consult Indian Railway Finance Corporation Ltd. / Arrangers, before depositing the application with the bank.

2. All applications submitted but rejected by Indian Railway Finance Corporation Ltd. would be returned by IRFC to the applicant/collection banker, without any Interest.

3. Application for a minimum of Rs. 20,000/- (and in multiples of Rs 10,000/- thereafter) will be accepted, any amount received in-fraction will be refunded to the investor without interest.

Apply ONLINE – IRFC Capital Gain Tax Exemption Bonds –Series IV [Payment through Net Banking/ Debit Card]

Apply OFFLINE – IRFC Capital Gain Tax Exemption Bonds –Series IV

IRFC Capital Gain Tax Exemption Bonds –Series IV Upload Documents.

All about REC 54EC Capital Gain Tax Exemption Scheme Bonds FY 2020-21

NHAI 54EC Capital Gain Tax Exemption Scheme Bonds FY 2020-21

[Power Finance Corporation Limited] PFC Capital Gain Tax Exemption Bonds –Series IV FY 2020-21

Instructions to submit IRFC 54EC CGTE Bonds online application form through Net Banking/ Debit Card

To fill the application form online, the investor should be having the following information and documents available in PDF format.

a. email ID

b. Mobile.

c. Self-attested ID Proof (PDF only)

d. Self-attested Address Proof (PDF only)

e. Cancelled Cheque for application with Physical Bond securities

Step by step procedure.

1. Click the “Fill a New Form online” button

2. Fill the application form online and submit

3. SMS will receive on successfully application submitted.

4. Download the duly filled application form.

5. Take a print and attest the signatures by all applicant(s)

6. Scan the application copy duly signed by all applicant(s) and save as PDF format.

7. Click the “upload Application/KYC documents” button

8. Enter the following application details as submitted online to validate the application form

a. Application No.

b. Email ID

c. Mobile

9. Click “Get OTP” button – to receive an OTP on your email and mobile.

10. Enter OTP received on mobile / email ID and click “Validate “

11. On validation, the application information will be displayed.

12. Upload the following valid PDF documents to proceed for payment

a. Application form duly signed

b. ID proof with self-attested

c. Address Proof with self-attested

d. Others If any / Cancelled Cheque for Physical Holders

13. On upload of above documents, it will enable the payment gateway “Proceed to Payment” button.  

14. Pay through Net banking / Debit Card

15. On success/fail of the payment, the acknowledgment will be generated and the same will be sent through email.

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