CBDT notifies 5 years HUDCO Bonds eligible for capital gain exemption u/s 54EC 

CBDT notifies 5 years Bonds of HUDCO eligible for capital gain exemption under section 54EC 

MINISTRY OF FINANCE
(Department of Revenue)
 (CENTRAL BOARD OF DIRECT TAXES)

Notification No. 31/2025

New Delhi, the 7th April, 2025 S.O.

1644(E).—In exercise of the powers conferred by clause (ba) of Explanation to section 54EC of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that bonds redeemable after five years and issued on or after 01st day of April, 2025, by the Housing and Urban Development Corporation Limited (HUDCO) (a public financial institution notified by the Central Government under section 2(72) of the Companies Act, 2013), as ‘long-term specified asset’ for the purposes of the said section.

2. HUDCO shall utilise the proceeds from such bonds only for those infrastructure projects which can service the debt out of the project revenues without being dependent on the State Governments for the service of debts.

Explanation: For the purpose of this notification,

(a) ‘Infrastructure’ includes all infrastructure sub-sectors as defined vide notification no. 262 of the Department of Economic Affairs, Ministry of Finance issued by F.No.13/1/2017-INF dated October 11, 2022 (Updated Harmonised Master List of Infrastructure sub-sectors) and shall include any amendments or additions made thereof;

(b) ‘Infrastructure project’ means any project in Infrastructure sector.

[F. No. 225/06/2024/ITA-II]

CASTRO JAYAPRAKASH T.,
Under Secy

Download CBDT Notification No. 31/2025 Click Here >>

• If assessee fails to explain source of purchases, estimating profit rate contrary to Section 69C
• Income Tax Department not trusted even upon its lawyers – SC slams ITD for delay
• Goods loaded in two trucks with one e-way bill stating both truck numbers – No evasion
• GOI makes four new Labour Codes  effective from 21st November 2025
• Provident fund dues have first charge over claim of bank under SARFAESI Act – SC