Tax on interest earned on Sec 54 EC

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  1. MaheshKmart

    MaheshKmart New Member


    I made capital gains of 45 lacs on my old property. I was told that if I pay the capital gains tax on i would end up paying 5 to 6 lacs and if I were to invest in Sec 54 EC the tax that i would require to pay on the interest earned at end of 3 years would be approximately same.

    Does this estimation makes sense ?

  2. ZED

    ZED Well-Known Member

    Not precisely.
    The rate of interest of bonds is 6% p.a, but if you see that it also saved your tax of 20.60% (in the F.Y of transfer)then its worth investing. If by investing money somewhere else, you can gain more than that (that is your gross income would be 38.60% of 45Lacs in 3 years) then only search for some other option.
    Not to mention that the above income is risk free.
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