Which is better REC or NHAI bonds?

REC bonds score a bit higher than NHAI bonds. Because on maturity i.e., after 5 years, NHAI bondholders have to apply for surrender of bonds only then the maturity amount is redeemed and paid by cheque or ECS. In the case of REC bonds, it will be automatically redeemed and paid by cheque or ECS.

Which capital gain bond is best?

54EC bonds
54EC bonds, or capital gains bonds, are one of the best way to save long-term capital gain tax. 54EC bonds are specifically meant for investors earning long-term capital gains and would like tax exemption on these gains. Tax deduction is available under section 54EC of the Income Tax Act.

Are NHAI bonds a good investment?

Interest earned from these bonds is taxable. However, no TDS is deducted on interest. The bonds issued by the NHAI are rated AAA by CRISIL and CARE which prominent rating agencies of India. So as per rating given by the Agencies these bonds are safe to invest.

Are NHAI bonds safe?

The Bonds issued by NHAI & REC are AAA Rated Bonds indicating that they are highly stable and the face value of each bond is Rs. 10,000.

Is interest from NHAI bonds taxable?

The interest on the bonds is taxable at your slab rate. The bonds have a lock-in period of 5 years.

Are NHAI bonds tax free?

NHAI will open its public issue of tax free, secured, redeemable, non convertible bonds of face-value of ` 1,000 each, in the nature of debentures having tax benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended for an amount aggregating to a total of ` 3,300 crores.

Is NHAI bond tax free?

Can NHAI bonds be redeemed before maturity?

The NHAI /REC bond can be fully redeemed at maturity after three years. You cannot transfer these bonds in another person’s name. Also, it is a non-negotiable financial instrument, hence one should not expect to get money by keeping the bond as a security against any loan or advance, since this is not permitted.

Does NHAI deduct TDS on bonds?

These bonds are offered to investors who earned long-term capital gains from land or building or both and would like tax exemption on these gains. Both REC and NHAI bonds offer an interest rate of 5.75\% per annum, payable annually. Interest earned from 54EC bonds is taxable; however, no TDS is deducted on interest.

Are NHAI bonds listed?

Benefits of investing in NHAI Tax Free bonds Liquidity: These bonds will be listed on both BSE & NSE and hence provide liquidity for bond holders*.

Is NHAI tax free bond?

Tax-free bonds are debt instruments through which Public Sector Undertakings (PSUs) like NHAI, NTPC, REC in India raised money (through Public Offers that came in between FY12 and FY16). These were issued for a long-term maturity of around 10, 15 or 20 years.