sold a plot last month, LTCG of around Rs 28 lakh. CA said invest in NHAI bonds under Section 54EC within 6 months and the tax is saved. I’ve been trying to find NHAI bonds online for the last two days and every link is broken or says not available. am I looking in the wrong place or is something else going on?
Your CA is right about the section but out of date on the issuer. NHAI stopped accepting new 54EC bond applications after September 3, 2022. That is why you cannot find them. The scheme is not dead, the instrument is not gone – NHAI specifically has exited it because their debt load was already heavy. The three active issuers right now are REC, PFC, and IRFC. All three are government-backed AAA-rated PSUs. Same 5.25% interest rate, same 5-year lock-in, same Rs 50 lakh annual cap, same Section 54EC exemption. Go to your bank or a bond platform and look for REC or IRFC bonds instead of NHAI.
so nhai bonds are not coming back? like permanently discontinued?
No indication they are coming back. The government advised NHAI to reduce borrowing given their Rs 3.44 trillion debt load. REC, PFC, and IRFC have filled the gap. For all practical purposes treat those three as the current options.
On which issuer to pick among REC, PFC, and IRFC – there is no meaningful financial difference. Same rate, same lock-in, same government backing, all AAA. The practical difference is availability and turnaround time. REC tends to have the widest distribution network through banks. IRFC allotment can take 8 to 10 weeks to show in your demat, which is longer than some people expect. Apply well before your 6-month deadline, not in the last week.
One important nuance on the Rs 50 lakh cap worth flagging. The limit applies across the current financial year and the following financial year combined, not Rs 50 lakh in each year separately. So if you sell a property in January 2026, your 6-month window runs through July 2026, crossing two financial years. You can invest across FY26 and FY27 but the combined maximum for the 54EC exemption is Rs 50 lakh, not Rs 50 lakh in each.
Disc: confirm the split with your CA before investing across years.
my gains are Rs 28 lakh so I’m under the limit anyway. but good to know. and I can only invest gains from the property sale right – not equity or mutual fund gains?
Correct. Section 54EC applies only to long-term capital gains from sale of land or building. Gains from equity shares, mutual funds, or gold are not eligible regardless of how long you held them. This is a common misconception. The tax law is specific: land or building or both. Nothing else qualifies. AMFI has been pushing for mutual funds to be included but as of May 2026 Parliament has not passed that amendment. Acting on the assumption that it applies to mutual fund gains can result in a tax demand.
one more thing before you apply. the 6-month clock starts from the date of transfer, which is the property registry date, not the date you received the payment. if registry was March 15, your deadline is September 14 regardless of when the buyer paid you. people have missed the window because they counted from payment date instead. confirm the exact registry date with your CA before you calculate how much time you have left.