The Central Board of Direct Taxes (CBDT) has notified that the Capital Gain exemption under section 54EC of the Income Tax Act is applicable to bonds issued by Power Finance Corporation Ltd also.
Section 54EC of the Income Tax Act provides an option to save tax on capital gain arising from transfer of long term capital asset subject to fulfillment of certain conditions stipulated in the provision.
The notification stated that any bond redeemable after three years and issued on or after the 15th day of June, 2017 by the Power Finance Corporation Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956) as ‘long-term specified asset’ for the purposes of section 54EC(b) of Income Tax Act.
Read the full text of the Notification below.
