Can I sell section 54EC infra bonds before maturity?
These bonds are issued by infrastructure companies that are backed by the government. Hence, the risk factor gets mitigated by buying such bonds. The capital gain bonds are redeemable before maturity. One cannot sell these bonds as they are not listed in the stock exchange.
How do I avoid capital gains tax?
How to Minimize or Avoid Capital Gains Tax
- Invest for the long term. …
- Take advantage of tax-deferred retirement plans. …
- Use capital losses to offset gains. …
- Watch your holding periods. …
- Pick your cost basis.
How can I buy 2021 infrastructure bonds?
How to apply
- You can apply online to invest in an infrastructure bond, if you have a demat account. …
- You require a demat account and a PAN to trade in infrastructure bonds.
- You can apply for these bonds in the physical form. …
- These bonds have a maturity period of 10 years and a lock in period of 5 years.
How do I keep long term capital gains tax?
3 Ways to Save on Capital Gain Tax on the Sale of Property
- Invest in CGAS (Capital Gains Account Scheme) Investing in Capital Gains Account Scheme (CGAS) is another means to save capital gains tax on property sales. …
- Set off all Capital Losses. …
- Invest in Bonds.
How can I save capital gains on sale of residential property 2020?
However, you can substantially reduce it by using one of the following methods:
- Exemptions under Section 54F, when you buy or construct a Residential Property. …
- Purchase Capital Gains Bonds under Section 54EC. …
- Investing in Capital Gains Accounts Scheme.