New Delhi, July 10 -- The finance ministry 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 9 July, the ministry of new and renewable energy said on Thursday.

Bonds redeemable after five years and issued by Ireda after the notification will qualify for tax exemption under section 54EC of the Income Tax Act, 1961, which allows capital gains tax exemption on investments in specified bonds.

"Eligible investors can save tax on Long Term Capital Gain (LTCG) up to Rs.50 lakh by investing in these Bonds in a Financial Year. Ireda will get benefit in terms of lower cost of funds, which is a si...