Income Tax

CBDT notifies IREDA Five Years Bonds for exemption u/s 54EC

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 >>

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