54EC bonds, Nov. 11 -- When you sell a property and realise a long-term capital gain, you can choose to invest the proceeds in specified bonds under Section 54EC of the Income Tax Act, 1961. This option offers a tax-efficient way to safeguard your gains. The following write-up provides a detailed understanding of this concept.

These bonds are also known as capital gains bonds. They are issued by government-backed institutions such as Power Finance Corporation Limited (PFC), Rural Electrification Corporation Limited (REC), and Indian Railway Finance Corporation Limited (IRFC), among others. The bonds issued are categorically notified for the purpose of Section 54EC of the Income Tax.

The primary objective of these bonds is to help the is...