What is rural electrification bond?
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.
What does Rural Electrification Corporation do?
Rural Electrification Corporation Ltd is a Navratna Central Public Sector Enterprise under the Ministry of Power. The company is engaged in the financing and promotion of transmission distribution and generation projects throughout India.
Are REC bonds tax free?
The Interest Rate on the Capital Gains Bonds is 5.75%. The Interest @ 5.75% is payable annually by both NHAI as well as REC. Thus, only the amount invested is exempted from Capital Gains Tax. The Interest that is earned on these bonds is liable to income tax.
How do you get REC bonds?
Investors are required to submit the Application Form duly filled along with either a Demand Draft or account payee Cheque payable in favour of “REC Ltd- 54EC” or “Rural Electrification Corporation Limited – 54EC Bonds” along with necessary enclosures at the designated branches of collecting banks – Axis Bank, Canara …
Which bond is better NHAI or REC?
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.
What is the lock in period for capital gain bonds?
As per regulations, you have to invest in these bonds within six months from sale of the property but not beyond the due date for furnishing income tax returns. First of all, evaluate your liquidity situation since the investment is going to be locked for a period of five years.
Is REC Ltd a PSU?
Rural Electrification Corporation Ltd is a Navratna Central Public Sector Enterprise under the Ministry of Power. Their clients primarily include Indian public sector power utilities at the central and state levels and private sector power utilities. …
What is the full form of REC?
REC Limited
| REC corporate office on Lodhi Road, New Delhi. | |
|---|---|
| Native name | आर ई सी लिमिटेड |
| Formerly | Rural Electrification Corporation Limited |
| Type | Public Sector Undertaking |
| Traded as | BSE: 532955 NSE: RECLTD |
Is REC Ltd a good buy?
Price To Earnings Ratio PE vs Industry: RECLTD is good value based on its PE Ratio (3.3x) compared to the Indian Diversified Financial industry average (13.8x). PE vs Market: RECLTD is good value based on its PE Ratio (3.3x) compared to the Indian market (18.8x).
Is REC a govt company?
REC corporate office on Lodhi Road, New Delhi. REC Limited, formerly Rural Electrification Corporation Limited, is a public Infrastructure Finance Company in India’s power sector. The company is a Public Sector Undertaking and finances and promotes power projects across India.
Are there any tax free bonds for rural electrification?
Rural Electrification Corporation (REC) Tax Free Bonds – Should you invest? Rural Electrification Corporation (REC) Tax Free Bonds – Should you invest?
How does Rural Electrification Corporation Limited fund its business?
REC Limited funds their business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings and provides financial assistance to the power sector in all segments i.e Generation, Transmission and Distribution. Home About Us Financial Products Investors
Who is the owner of bonds REC Limited?
Bonds REC Limited (formerly Rural Electrification Corporation Limited) is a Navratna company under the administrative control of the Ministry of Power.
Is the Information Memorandum of REC a prospectus?
Note : This information memorandum is neither a prospectus nor a statement in lieu of prospectus. This is only an information brochure intended for private use and should not be construed to be prospectus and/or an invitation to the public for subscription to Bonds. REC can at its sole and absolute discretion change the terms of the offer.