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 >>
- Non-deduction of TDS does not make transaction as unexplained in the hands of deductee – ITAT
- Last date to submit MEF 2026-27 extended to 09.09.2026
- Validity of demand u/s 156 for default u/s 115-O, if assessment order u/s 143(3) has Nil demand
- Issue already examined and adjudicated by CIT(Appeals), can’t be reopened on same set of facts
- TDS can’t be denied for non deposit of tax deducted by the deductor – High Court
