RBI Bonds

In the scenario of falling interest rates of fixed income schemes like Fixed Deposits offered by Banks, RBI Bonds are better option These Bonds are issued by RBI (Reserve Bank of India) Individuals (single, joint or minor) and HUFs can invest in these Bonds

Capital Gain Bonds

Long-term capital gains (LTCG) are taxable under the Income Tax Act. However, you can get exemption on Capital Gains tax under Sections 54, 54F and 54EC. While the Sections 54 and 54F pertain to purchasing a house with the capital gains made, Section 54EC allows you to claim exemption from LTCG tax on the purchase of notified government bonds.

Section 54EC states that if the profit made on sale of a long-term capital asset – whether an immovable property or shares and stocks – is invested by the taxpayer in ‘long-term specified assets’ within 6 months of the sale, then the capital gains are exempted from tax.