India, July 10 -- Central Board of Direct Taxes (CBDT) under the Ministry of Finance has notified bonds issued by Indian Renewable Energy Development Agency Ltd. (IREDA) as 'long-term specified asset' under section 54EC of the Income-tax Act, 1961. The notification came into effect from July 9, 2025.
As per the notification, bonds redeemable after five years and issued by IREDA on or after the notification date will qualify for tax exemption benefits under section 54EC, of the Income Tax Act, 1961, which allows capital gains tax exemption on investments in specified bonds. The proceeds from these bonds will be utilised exclusively for renewable energy projects capable of servicing debt through their project revenues, without dependence on ...