India Finance Research Brief: Capital gains bonds (Section 85, formerly 54EC) for property sales

Official updates to review

• SEBI: [General Remittance Order dated 12.10.2026 in Recovery Certificate No. 8900 of 2025 issued against Clifford Capital Partners AG SA (Erstwhile Seazun Limited) [PAN: NA] in the matter of GDR issues of IKF Technologies Limited.](https://www.sebi.gov.in/enforcement/recovery-proceedings/oct-2026/general-remittance-order-dated-12-10-2026-in-recovery-certificate-no-8900-of-2025-issued-against-clifford-capital-partners-ag-sa-erstwhile-seazun-limited-pan-na-in-the-matter-of-gdr-issues-of-ik-_105164.html) — 12 Oct, 2026 +0530
• SEBI: Exemption order in the matter of S Chand and Company Limited — 12 Oct, 2026 +0530
• SEBI: General remittance Order dated October 12, 2026 against Muse Traders (Proprietor - Baljit Singh) (PAN: BERPR1999P) Pure Traders Proprietor Bhavna Jethvani (PAN: BBOPJ6519H) and Taj Enterprises (Proprietor - Taj Khan) (PAN: BWRPK1312F) jointly and severally in the matter of Muse Traders, Pure Traders and Taj Enterprises under RC No. 7948 of 2024 — 12 Oct, 2026 +0530
• RBI: Result of the Overnight Variable Rate Reverse Repo (VRRR) auction held on October 13, 2026 — Tue, 13 Oct 2026 10:20:00
• RBI: Money Market Operations as on October 12, 2026 — Tue, 13 Oct 2026 09:00:00
• RBI: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on October 13, 2026 — Mon, 12 Oct 2026 19:05:00

Findost links to primary sources so readers can verify the underlying announcement before forming a view.

Educational explainer: Capital gains bonds (Section 85, formerly 54EC) for property sales

Sold a house, land or building and facing a capital-gains tax bill? The capital-gains bond exemption lets you avoid tax on long-term gains from land or buildings, up to the amount you put into specified bonds. From 1 April 2026 this exemption sits in [Section 85 of the Income-tax Act, 2025](https://www.incometaxindia.gov.in/w/section-85-55). It was Section 54EC of the 1961 Act, and the bonds are still widely called "54EC bonds".

How it works, step by step:

1. You sell land or a building (or both) held for more than 24 months, so a long-term capital gain arises.
2. Within 6 months of the transfer, you invest the gain in a notified "long-term specified asset": bonds redeemable after five years from NHAI, REC or another notified issuer (for example PFC, IRFC, HUDCO or IREDA). Check that the series you buy is notified for your transfer date.
3. The capital gain you invest is not charged to tax. Any gain above the amount invested is taxed as usual.

The fine print:

• Limit: ₹50 lakh. Total investment cannot exceed ₹50 lakh in a tax year, or across the year of transfer and the next tax year together (s.85(2)).
• Lock-in: 5 years. If you transfer the bonds or convert them into money within five years, the exempted gain becomes taxable in that year. A loan or advance taken against the bonds is treated as converting them into money.
• Interest: REC's current series (Series XX, open 1 April 2026 to 31 March 2027) pays 5.25% a year, paid annually on 30 June (REC term sheet). The interest is taxable. The bonds carry AAA ratings from ICRA, CRISIL, CARE and India Ratings; they are issued by public-sector companies but are not a sovereign guarantee.
• Applies only to gains from land or buildings, not shares or mutual funds.

How to think about it (educational, not a recommendation): the trade-off is a tax-free but locked, lower-yield bond against paying long-term capital-gains tax (generally 12.5%) and investing what's left freely. The right answer depends on your gain, other reinvestment options such as the residential-house exemption, liquidity needs and tax position. Consult a qualified tax professional before acting.

Full guide: Section 54EC / Section 85 capital gains bonds on Findost.

Sources and scope

• Income-tax Act, 2025 — Section 85
• REC Capital Gains Tax Exemption Bonds Series XX term sheet
• SEBI RSS feed
• RBI press-release RSS feed
• Google Trends India

Optional Search Console, Reddit and X inputs are used privately for editorial topic selection. Their raw queries, posts, accounts and identifiers are never published. This brief is not personalised investment, tax, or legal advice, and it does not recommend securities or products. Verify source updates and consult a qualified professional before acting.