CBDT notifies IREDA Five Years Bonds for exemption under section 54EC of the Income Tax Act, 1961.
Section 54EC of the Income Tax Act, 1961 provides exemption from capital gains tax when long-term capital gains (LTCG) from the sale of land or building (or both) are invested in certain specified bonds.
Currently the bonds issued by the following Authorities have been notified under section 54EC:
National Highways Authority of India (NHAI) Bonds
Rural Electrification Corporation (REC) Bonds
Power Finance Corporation Ltd. (PFC) Bonds
CBDT has today issued notification making IREDA Bonds eligible for deduction under section 54EC as under.
MINISTRY OF FINANCE
Department of Revenue
CENTRAL BOARD OF DIRECT TAXES
Notification No. 73/2025
New Delhi, the 9th July, 2025
S.O. 3060(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 bonds redeemable after five years and issued on or after the date of this notification, by the Indian Renewable Energy Development Agency (IREDA) (a Public Limited Government Company established as a Non-Banking Financial Institution), as ‘long-term specified asset’ for the purposes of the said section.
2. IREDA shall utilise the proceeds from such bonds only for those renewable projects which can service the debt out of the project revenues without being dependent on the State Governments for the service of debts.
[F. No. 225/192/2023]
Dr. CASTRO JAYAPRAKASH T.,
Under Secy
 Download CBDT Notification No. 73/2025 Click Here >>
- SC to decide distinction in employees & employer contribution to PF, ESI for allowability u/s 43B
- No liability to collect TCS u/s 206C (1C) from person involved in illegal mining – SC
- Receipts mentioning that it was towards corpus, donation assumed to be for corpus of trust
- Credit in partner’s capital account for book entry adjustments can not be added u/s 68
- Non-compliance of summons issued u/s 131 no ground to make addition u/s 68
