The applicable rate of interest for 54EC bond series has been amended from 6% per annum to 5.25% per annum w.e.f December 1, 2016. Both National Highways Authority of India (NHAI) & Rural Electrification Corporation Limited (REC) have been issuing long term Capital Gain Tax Exemption Bonds u/s 54EC of Income Tax Act 1961. now the new rate of interest for these bonds will be 5.25 % per annum.

Other things to be noted;

  1. Application money to be credited in issuer’s collection accounts on or after December 1, 2016 will be 5.25% P.A. till maturity of bonds.
  2. Application money to be credited in issuer’s collection accounts on or before November 30, 2016 will remain 6% P.A. till maturity of bonds.

Refer below links for the notices issued by both NHAI & REC

Notice for reduction in Coupon Rate_NHAI

Notice for reduction in Coupon Rate_REC

Now Reduced Rate of 5.25% P.A. on 54EC Bonds Instead 6% P.A.

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