{"id":6208,"date":"2023-06-16T13:35:37","date_gmt":"2023-06-16T13:35:37","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=6208"},"modified":"2026-02-26T08:21:17","modified_gmt":"2026-02-26T08:21:17","slug":"are-capital-gain-bonds-helpful","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/","title":{"rendered":"Are Capital Gain Bonds Helpful?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Having invested heavily in a real estate asset or an immovable property to receive lucrative returns is a seasoned investor\u2019s wishful thinking and in fact, when it gets true, paying a large chunk of the amount to the tax is a pain that we all as an investor have to go through.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We badly want to save the tax but fail at doing it wisely, let\u2019s explore Capital Gain Bonds which are otherwise called 54 EC Bonds in this case.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#How_54EC_Bonds_or_Capital_Gain_Bonds_can_be_a_savior\" >How 54EC Bonds or Capital Gain Bonds can be a savior?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#What_are_long-term_capital_gains_and_what_are_not\" >What are long-term capital gains and what are not?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#How_is_it_to_have_Indian_Bond_Market_in_Global_Indices\" >How is it to have Indian Bond Market in Global Indices?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#What_choices_are_you_left_with\" >What choices are you left with?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#1_Pay_the_long-term_capital_gain_tax_LTCG\" >1. Pay the long-term capital gain tax (LTCG)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#2_Reinvest_in_other_property_or_construct_a_house\" >2. Reinvest in other property or construct a house<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#How_are_Different_Debt_Instruments_Taxed\" >How are Different Debt Instruments Taxed?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#3_Invest_in_54_EC_or_Capital_Gain_Bonds\" >3. Invest in 54 EC or Capital Gain Bonds\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#4_Pay_the_LTCG_and_the_remaining_amount_in_the_bonds_with_a_return_of_8_and_more\" >4. Pay the LTCG and the remaining amount in the bonds with a return of 8% and more<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#Wrapping_up\" >Wrapping up<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#_Additional_Note\" >\u00a0Additional Note:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#What_is_Green_Fixed_Deposits\" >What is Green Fixed Deposits?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_54EC_Bonds_or_Capital_Gain_Bonds_can_be_a_savior\"><\/span><strong>How 54EC Bonds or Capital Gain Bonds can be a savior?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">On a more precise note, one must understand, the tax that you can save through this investment is for <a href=\"https:\/\/goldenpi.com\/collections\/bonds-for-long-term-investment\" target=\"_blank\" rel=\"noopener noreferrer\">long-term capital gains<\/a> and not <a href=\"https:\/\/goldenpi.com\/collections\/bonds-for-short-term-investment\" target=\"_blank\" rel=\"noopener noreferrer\">short-term capital gains<\/a>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So the gains or the profits you made must be over a minimum limit to consider it to be long-term gains. Let\u2019s understand each crucial aspect of this in a better way!<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_long-term_capital_gains_and_what_are_not\"><\/span><strong>What are long-term capital gains and what are not?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Any gains made from the sale of a property or land are called Capital Gains as it is a Capital Assets. It depends on the holding time of the asset to consider it a long-term or short-term gain.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the property is sold after 2 years, it comes under the long-term capital gain. And any holding period below 2 years is considered a short-term gain.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And in regards to the tax, any money generated after the sale of the property is considered as \u201cIncome\u201d. For any income generated, we are liable to pay tax, so the tax paid for this specific income is called Capital Gain Tax.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If it is a <a href=\"https:\/\/goldenpi.com\/collections\/bonds-for-short-term-investment\" target=\"_blank\" rel=\"noopener noreferrer\">short-term capital gain<\/a>, the investor has to pay as per their income tax. In the case of the long-term capital gain, it attracts 20.6 percent tax plus the cess and surcharge with the indexation benefit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The point to be noted is that if the property is inherited or is a gift, as it doesn\u2019t involve the purchase, it will not incur capital gain tax but if you decide to sell the inherited or gifted property, then the capital gain tax is applicable as per the holding period.\u00a0<\/span><\/p>\n<h4 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"How_is_it_to_have_Indian_Bond_Market_in_Global_Indices\"><\/span><strong><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/how-is-it-to-have-indian-bond-market-in-global-indices\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Capital_Gains\">How is it to have Indian Bond Market in Global Indices?<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"What_choices_are_you_left_with\"><\/span><strong>What choices are you left with?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In order to save your long-term capital gain tax or LTCG through the fixed-income market, let\u2019s look into these options.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Pay_the_long-term_capital_gain_tax_LTCG\"><\/span><strong>1. Pay the long-term capital gain tax (LTCG)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Let\u2019s imagine that you have to pay the incurred tax. Assuming you have capital gains of Rs 40 lakhs after selling a property. On the indexed profits of Rs 15,<\/span><span style=\"font-weight: 400;\">83,941<\/span><span style=\"font-weight: 400;\">, you need to pay a tax of 20.6% which is up to Rs 3,26,292 have to be paid as tax.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is straightforward to comprehend. But since you are here to save tax, this isn\u2019t the option you need to look at rather at the other options below.\u00a0\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Reinvest_in_other_property_or_construct_a_house\"><\/span><strong>2. Reinvest in other property or construct a house<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Assuming this time you are reinvesting the profits in another property or trying to reconstruct, imagine the construction cost, maintenance cost, and interior cost when you are constructing and in case of buying a brand new property, it might sound much easier than constructing but still asks you to hunt for a property or land that meets your criteria is just a big task in itself.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what if you are not looking at buying or constructing with this money, you might consider the next option that is available to you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The insightful information of this option is that under Section 54, you can exempt taxes on the capital gains you made by reinvesting in buying or constructing, but only once by ensuring the capital gains don\u2019t exceed Rs 2 crores.\u00a0<\/span><\/p>\n<h4 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"How_are_Different_Debt_Instruments_Taxed\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/how-are-different-debt-instruments-taxed\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Capital_Gains\"><strong>How are Different Debt Instruments Taxed?<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"3_Invest_in_54_EC_or_Capital_Gain_Bonds\"><\/span><strong>3. Invest in 54 EC or Capital Gain Bonds\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When it comes to 54 EC Bonds the maximum investment is Rs 50 lakhs and investment in this instrument must be done before 6 months of the property sale and not after that. The property can either be residential or commercial for that matter.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As long as you are not looking to use this money immediately up until 5 years, you are great with this as it has a lock-in period of 5 years. And you can\u2019t sell it anytime before the maturity date.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Currently, bonds from the National Highways Authority of India (NHAI), Rural Electrification Corporation (REC),\u00a0 Indian Railway Finance Corporation (IRFC) Limited bonds,\u00a0 Power Finance Corporation Limited (PFC) bonds, and Central Governments are offering these bonds to you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can start with as low as 10,000 to invest in these <a href=\"https:\/\/goldenpi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">bonds<\/a> and in case the property is held jointly by multiple individuals then each individual gets the leverage to invest Rs 50 lakhs in 54 EC Bonds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you wonder how these bonds are backed, then the governments are behind this and possess a rating that is highest from the <a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/credit-rating-agencies\/#Top_Credit_Rating_Agencies_in_India\" target=\"_blank\" rel=\"noopener noreferrer\">rating agencies<\/a> like <a href=\"https:\/\/www.careratings.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">CARE<\/a>, <a href=\"https:\/\/www.crisil.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">CRISIL<\/a>, and <a href=\"https:\/\/www.icra.in\/\" target=\"_blank\" rel=\"noopener noreferrer\">ICRA<\/a>. The average interest offered in these bonds is 5%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another point to consider in this investment is the <a href=\"https:\/\/goldenpi.com\/faq\/taxation-on-returns\/what-is-the-tax-rate-on-the-interest-earned-from-bonds\" target=\"_blank\" rel=\"noopener noreferrer\">interest income is taxable<\/a> as per the income tax be it 10%, 20%, or 30% slab rate.\u00a0 With your preference, you can buy the bonds in a physical form or online, that\u2019s up to you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s imagine you are investing your profits in this bond of Rs 40,00,000 and you bought it at Rs 10,00,000 on <\/span><span style=\"font-weight: 400;\">1st May 2008 (FY 2008-09) and sold it on 9th November 2023 (FY 2023-24).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before we begin with calculating the tax exemption, the <a href=\"https:\/\/goldenpi.com\/collections\/bonds-for-long-term-investment\" target=\"_blank\" rel=\"noopener noreferrer\">long-term capital gains<\/a> come with indexation benefits and we need to find the Indexed Cost of Acquisition.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In order to find the Indexed Cost of Acquisition, Capital Inflation Index is needed, and this is how we can arrive at it:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Indexed Cost of Acquisition (Purchase cost\/CII of the year of purchase)*CII of the year of sale<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The indexed cost of the acquisition is:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(1000000\/137)*331 = Rs 24,16,058\/-<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here the Cost Inflation Index for FY 2008 &#8211; 2009 is 137 and the Cost Inflation Index for FY 2023 &#8211; 2024 is 331.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rs 24,16,058\/- is the cost that we need to use to calculate the Capital gain tax on the profits made by selling the property.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The next thing to do is to find the Capital Gain Tax, which can be found by deducting the Indexed Cost of Acquisition from the Actual Sale Price.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As per our example, the sale price was Rs 40 lakh and the arrived Indexed cost of acquisition was Rs <\/span><span style=\"font-weight: 400;\">24,16,058<\/span><span style=\"font-weight: 400;\">. With that the Capital Gain will be Rs 15,83,941\/- ( \u20b9 40 lakh- \u20b9 <\/span><span style=\"font-weight: 400;\">24.16 <\/span><span style=\"font-weight: 400;\">lakh)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rs 15,83,941\/- this amount is the gain considering the indexation, which will be liable to long-term capital gain tax of 20.6% + Surcharge if you are paying. But it can be exempted if you invest in Capital Gain Bonds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So when you invest <\/span><span style=\"font-weight: 400;\">Rs 15,83,941\/- in Capital Gain Bond, the tax is anyway exempted which will be nil. On investing you\u2019ll receive an interest of 5% per annum for 5 years, also assuming that you would reinvest the interest in the investment, it would give a compounded interest income each year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But as conveyed that the interest income is liable to income tax as per the slab rate, the post-tax interest income will be as follows.<\/span><\/p>\n<p style=\"text-align: right;\"><span style=\"font-weight: 400;\"><div id=\"footable_parent_6212\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui \">\n                <div class=\"pcrstb-wrap\"><table data-ninja_table_instance=\"ninja_table_instance_0\" data-footable_id=\"6212\" data-filter-delay=\"1000\" aria-label=\"Interest Income From Capital Gain Bonds\"            id=\"footable_6212\"\n           data-unique_identifier=\"ninja_table_unique_id_1906318316_6212\"\n           class=\" foo-table ninja_footable foo_table_6212 ninja_table_unique_id_1906318316_6212 ui table  nt_type_legacy_table selectable striped vertical_centered  footable-paging-right ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                            <col class=\"ninja_column_2 \">\n                            <col class=\"ninja_column_3 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_cashflows_after_5_years_if \">Cashflows after 5 years if:<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_10_tax_bracket \">10% tax bracket<\/th><th scope=\"col\"  class=\"ninja_column_2 ninja_clmn_nm_20_tax_bracket \">20% tax bracket<\/th><th scope=\"col\"  class=\"ninja_column_3 ninja_clmn_nm_30_tax_bracket \">30% tax bracket<\/th><\/tr>\n<\/thead>\n<tbody>\n\n        <tr data-row_id=\"1\" class=\"ninja_table_row_0 nt_row_id_1\">\n            <td>54EC Bonds @5%<\/td><td>1,977,793<\/td><td>1,934,032<\/td><td>1,890,271<\/td>        <\/tr>\n    <\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table><\/div>\n    \n    \n    \n<\/div>\n(In Rs)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is how your returns look like on the investment in Capital Gain <a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-are-tax-free-bonds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bonds with tax exemption<\/a>.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Pay_the_LTCG_and_the_remaining_amount_in_the_bonds_with_a_return_of_8_and_more\"><\/span><strong>4. Pay the LTCG and the remaining amount in the bonds with a return of 8% and more<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The last option that one could do is to pay the LTCG of Rs 3,26,292 and put the remaining profits of Rs 12,57,649\u00a0 in <a href=\"https:\/\/goldenpi.com\/collections\/high-yield-bonds\" target=\"_blank\" rel=\"noopener noreferrer\">high-interest rate bonds<\/a> such as 8%, 10%, 11% &amp; 12%<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Continuing with the same example, and on investing Rs 12,57,649 in high-interest rate bonds, this is what it comes out to.<\/span><\/p>\n<p style=\"text-align: right;\"><span style=\"font-weight: 400;\"><div id=\"footable_parent_6213\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui \">\n                <div class=\"pcrstb-wrap\"><table data-ninja_table_instance=\"ninja_table_instance_1\" data-footable_id=\"6213\" data-filter-delay=\"1000\" aria-label=\"Interest Income from High interest Bonds\"            id=\"footable_6213\"\n           data-unique_identifier=\"ninja_table_unique_id_2687869857_6213\"\n           class=\" foo-table ninja_footable foo_table_6213 ninja_table_unique_id_2687869857_6213 ui table  nt_type_legacy_table selectable striped vertical_centered  footable-paging-right ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                            <col class=\"ninja_column_2 \">\n                            <col class=\"ninja_column_3 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_cashflows_after_5_years_if \">Cashflows after 5 years if:<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_10_tax_bracket \">10% tax bracket<\/th><th scope=\"col\"  class=\"ninja_column_2 ninja_clmn_nm_20_tax_bracket \">20% tax bracket<\/th><th scope=\"col\"  class=\"ninja_column_3 ninja_clmn_nm_30_tax_bracket \">30% tax bracket<\/th><\/tr>\n<\/thead>\n<tbody>\n\n        <tr data-row_id=\"2\" class=\"ninja_table_row_0 nt_row_id_2\">\n            <td>Invests @ 8%<\/td><td>1,788,874<\/td><td>1,729,849<\/td><td>1,670,824<\/td>        <\/tr>\n            <tr data-row_id=\"3\" class=\"ninja_table_row_1 nt_row_id_3\">\n            <td>Invests @ 10%<\/td><td>1,948,676<\/td><td>1,871,895<\/td><td>1,795,114<\/td>        <\/tr>\n            <tr data-row_id=\"4\" class=\"ninja_table_row_2 nt_row_id_4\">\n            <td>Invests @ 11%<\/td><td>2,005,342<\/td><td>1,922,265<\/td><td>1,839,188<\/td>        <\/tr>\n            <tr data-row_id=\"5\" class=\"ninja_table_row_3 nt_row_id_5\">\n            <td>Invests @ 12%<\/td><td>2,120,531<\/td><td>2,024,656<\/td><td>1,928,780<\/td>        <\/tr>\n    <\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table><\/div>\n    \n    \n    \n<\/div>\n(In Rs)<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wrapping_up\"><\/span><strong>Wrapping up<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We have put across the options you can opt for, it\u2019s up to you to make a better analogy to invest in the one that suits you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In line with the investment choices, Capital Gain Bonds make absolute sense to get interest on the profits you earned while also nullifying the tax it could have incurred than paying the tax directly with no extra interest income or investing in the high-interest bonds by taking higher risk. Or having to hunt for a new property or land or even be involved in the hassles of construction.<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"_Additional_Note\"><\/span><strong>\u00a0Additional Note:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>Please note that there has been a recent change in the taxation of real estate under the long-term capital gains (LTCG) regime. The government has introduced an amendment allowing taxpayers to choose between two tax options for properties acquired before July 23, 2024:<\/p>\n<ol>\n<li>A lower rate of 12.5% without indexation.<\/li>\n<li>A higher rate of 20% with indexation.<\/li>\n<\/ol>\n<p>Taxpayers can calculate their tax liability under both schemes and opt for the one that results in a lower tax payment. This update may impact your tax planning and investment decisions.<\/p>\n<h4 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"What_is_Green_Fixed_Deposits\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-are-green-fixed-deposits\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Capital_Gains\"><strong>What is Green Fixed Deposits?<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Having invested heavily in a real estate asset or an immovable property to receive lucrative returns is a seasoned investor\u2019s wishful thinking&hellip;<\/p>\n","protected":false},"author":4,"featured_media":12187,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[24],"tags":[],"class_list":["post-6208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bond-market"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Are Capital Gain Bonds Helpful? - Capital Gain Bonds Interest Rate<\/title>\n<meta name=\"description\" content=\"Read articles on how to buy capital gain bonds and the finance sector online at GoldenPi. These articles include complete information, tips and reviews on bonds in India.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Capital Gain Bonds Helpful? - Capital Gain Bonds Interest Rate\" \/>\n<meta property=\"og:description\" content=\"Read articles on how to buy capital gain bonds and the finance sector online at GoldenPi. These articles include complete information, tips and reviews on bonds in India.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/\" \/>\n<meta property=\"og:site_name\" content=\"GoldenPi | Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldenpitech\" \/>\n<meta property=\"article:author\" content=\"goldenpitech\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-16T13:35:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-26T08:21:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/06\/26082108\/Are-Capital-Gain-Bonds-Helpful.png\" \/>\n\t<meta property=\"og:image:width\" content=\"731\" \/>\n\t<meta property=\"og:image:height\" content=\"347\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:site\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/\",\"url\":\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/\",\"name\":\"Are Capital Gain Bonds Helpful? - Capital Gain Bonds Interest Rate\",\"isPartOf\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/06\/26082108\/Are-Capital-Gain-Bonds-Helpful.png\",\"datePublished\":\"2023-06-16T13:35:37+00:00\",\"dateModified\":\"2026-02-26T08:21:17+00:00\",\"author\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722\"},\"description\":\"Read articles on how to buy capital gain bonds and the finance sector online at GoldenPi. These articles include complete information, tips and reviews on bonds in India.\",\"breadcrumb\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#primaryimage\",\"url\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/06\/26082108\/Are-Capital-Gain-Bonds-Helpful.png\",\"contentUrl\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/06\/26082108\/Are-Capital-Gain-Bonds-Helpful.png\",\"width\":731,\"height\":347,\"caption\":\"Are Capital Gain Bonds Helpful\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/goldenpi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Are Capital Gain Bonds Helpful?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#website\",\"url\":\"https:\/\/goldenpi.com\/blog\/\",\"name\":\"GoldenPi | Blogs\",\"description\":\"All about bonds online in India\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/goldenpi.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722\",\"name\":\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g\",\"caption\":\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\"},\"description\":\"With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.\",\"sameAs\":[\"goldenpitech\",\"https:\/\/www.linkedin.com\/company\/goldenpi\/\",\"https:\/\/x.com\/GoldenPiTech\"],\"url\":\"https:\/\/goldenpi.com\/blog\/author\/goldenpi\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Are Capital Gain Bonds Helpful? - Capital Gain Bonds Interest Rate","description":"Read articles on how to buy capital gain bonds and the finance sector online at GoldenPi. These articles include complete information, tips and reviews on bonds in India.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/","og_locale":"en_US","og_type":"article","og_title":"Are Capital Gain Bonds Helpful? - Capital Gain Bonds Interest Rate","og_description":"Read articles on how to buy capital gain bonds and the finance sector online at GoldenPi. These articles include complete information, tips and reviews on bonds in India.","og_url":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/","og_site_name":"GoldenPi | Blogs","article_publisher":"https:\/\/www.facebook.com\/goldenpitech","article_author":"goldenpitech","article_published_time":"2023-06-16T13:35:37+00:00","article_modified_time":"2026-02-26T08:21:17+00:00","og_image":[{"width":731,"height":347,"url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/06\/26082108\/Are-Capital-Gain-Bonds-Helpful.png","type":"image\/png"}],"author":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","twitter_card":"summary_large_image","twitter_creator":"@GoldenPiTech","twitter_site":"@GoldenPiTech","twitter_misc":{"Written by":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/","url":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/","name":"Are Capital Gain Bonds Helpful? - Capital Gain Bonds Interest Rate","isPartOf":{"@id":"https:\/\/goldenpi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#primaryimage"},"image":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#primaryimage"},"thumbnailUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/06\/26082108\/Are-Capital-Gain-Bonds-Helpful.png","datePublished":"2023-06-16T13:35:37+00:00","dateModified":"2026-02-26T08:21:17+00:00","author":{"@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722"},"description":"Read articles on how to buy capital gain bonds and the finance sector online at GoldenPi. These articles include complete information, tips and reviews on bonds in India.","breadcrumb":{"@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#primaryimage","url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/06\/26082108\/Are-Capital-Gain-Bonds-Helpful.png","contentUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2023\/06\/26082108\/Are-Capital-Gain-Bonds-Helpful.png","width":731,"height":347,"caption":"Are Capital Gain Bonds Helpful"},{"@type":"BreadcrumbList","@id":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/are-capital-gain-bonds-helpful\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldenpi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Are Capital Gain Bonds Helpful?"}]},{"@type":"WebSite","@id":"https:\/\/goldenpi.com\/blog\/#website","url":"https:\/\/goldenpi.com\/blog\/","name":"GoldenPi | Blogs","description":"All about bonds online in India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldenpi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722","name":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g","caption":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi"},"description":"With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.","sameAs":["goldenpitech","https:\/\/www.linkedin.com\/company\/goldenpi\/","https:\/\/x.com\/GoldenPiTech"],"url":"https:\/\/goldenpi.com\/blog\/author\/goldenpi\/"}]}},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/6208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/comments?post=6208"}],"version-history":[{"count":8,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/6208\/revisions"}],"predecessor-version":[{"id":8577,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/6208\/revisions\/8577"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media\/12187"}],"wp:attachment":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media?parent=6208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/categories?post=6208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/tags?post=6208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}