Capital Gain 54EC Bonds

Can Capital Gain (54EC) Bonds be used to offset long-term capital gains tax?


Yes! As per the Section 54EC of the Income Tax Act, if an investor earns profits from selling a long-term capital asset such as immovable property and invests it in long-term capital gain bonds within the 6 months from the date of sale, the capital gains qualify for tax exemption.
One must remember though, that interest earned from capital gains bonds is added to your annual income and taxed as per your marginal income tax slab rate.