Tax planning
Sec 85 (old 54EC) bonds within 6 months, up to ₹50 lakh
What this means, checked by a CA
If you sell land or a building held long term, you can save tax on up to ₹50 lakh of the gain by putting it into notified 5-year bonds (NHAI, REC and others) within 6 months of the sale. We work out how much to invest, check which bonds are open, help with the application and report the exemption.
₹1,499
Per event, + 18% GST
- Delivered in 1 working day to plan; bond allotment by issuer, usually within weeks
- Due: Invest within 6 months from the date of transfer of the land or building. Bonds locked in for 5 years.
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 5 items
Sale deed with registration date
Starts the 6-month clock
Long-term gain computation
Sets maximum investment
Bond application and allotment letter
Proof of date and amount
Earlier 54EC investments this year and next
₹50 lakh two-year cap
PAN, KYC and bank details
Bond application
DiscussionWhat we discuss · 5 items
What is the exact date of transfer (registration or possession)?
6 months run from transfer
Is the asset land or building held over 24 months, and was it a depreciable business asset?
Only long-term land or building qualifies
How much is the gain, and will you also use Sec 82 or 86 (old Sec 54 or 54F)?
Split the gain across exemptions
Have you invested in Sec 85 (old Sec 54EC) bonds earlier this financial year or will you next year?
₹50 lakh cap across two years
Will you need this money or a loan against it within 5 years?
Sale, conversion or loan claws back the exemption
FormsForms we file · 6 items
Compute the long-term gain on land or building (see CGN-IMM-02)
Where: Internal working. Due: Soon after sale
Decide the amount
Exempt amount = lower of (long-term gain), (amount invested in bonds) and ₹50 lakh; proportionate if investment is below the gain
Where: Internal working. Due: Before investing
Check which notified bonds are open (NHAI, REC, others notified incl. HUDCO) and apply with payment
Where: Issuer's website or designated bank branches. Due: Within 6 months of the date of transfer
Pay advance tax on any gain not covered
Where: https://www.incometax.gov.in e-Pay Tax. Due: Instalment of the quarter of sale
File ITR-2 (or ITR-3) claiming Sec 85 (old Sec 54EC) in Schedule CG with bond date and amount
Where: https://www.incometax.gov.in > e-File > Income Tax Returns. Due: AY 2026-27: 31 July 2026 (ITR-2)
Report bond interest each year under other sources; diary the 5-year lock-in
Where: Internal diary. Due: Each year until redemption
DeliverablesWhat you get · 3 items
Bond investment plan with deadline date
When: Within 1 working day
Bond allotment confirmation check
When: On allotment
Filed ITR with Sec 85 (old 54EC) claim
When: On filing
Questions people ask
Which bonds qualify?
5-year bonds issued from 1 April 2018 by NHAI, REC or other notified issuers; HUDCO was notified in April 2025.
Can I use 54EC and Sec 54 on the same sale?
Yes, each on different parts of the gain, as long as each section's conditions are met.
Can I claim 80C on these bonds?
No. Sec 54EC(3) bars it.
Does the new Act from April 2026 change 54EC?
It becomes Sec 85; experts flag a possible change for depreciable buildings, so check before relying on it for business property.
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