Investors can benefit from a capital gain tax exemption under section 54EC of the Income Tax Act 1961 by investing in 54 EC Capital Gain Bonds. These bonds allow investors to save on long-term capital gains resulting from the sale of immovable property, provided they invest in the bonds within six months of the sale. The maximum investment limit for 54EC bonds is Rs. 50,00,000 per financial year, and they offer an annual interest rate of 5.00%. It is important to note that the interest earned on these bonds is liable to income tax.

These bonds have the highest safety rating, “AAA,” and are issued by central PSUs, which means there is no risk involved in terms of repayment and interest.