Commonly referred to as Sec 54EC Bonds, the National Highway
Authority of India Bonds serves as an avenue for individuals to mitigate taxes
on long-term capital gains resulting from the sale of their investments. NHAI
is responsible for the development and maintenance of national highways and
various government-backed projects in India.
Key Features:
- NHAI bonds, with
the highest credit rating of AAA, are issued by an autonomous government
agency, making them a secure investment.
- NHAI, overseeing
national highway projects, plays a pivotal role in toll fee collection to
regulate traffic flow effectively.
- The bonds have a
lock-in period of 5 years and can be utilized for claiming a deduction
under Section 54EC of the Income Tax Act, 1961, with a maximum deduction
of ₹50 L.
- Non-transferable
and non-negotiable, NHAI bonds are subject to TDS deductions for NRI
investors as per the DTAA form.
Investment Details and Interest:
- The investment in
NHAI bonds starts at a minimum of ₹10,000, equivalent to one bond, and
extends up to a maximum of ₹50,00,000, representing 500 bonds.
- As of February
2023, Nitin Gadkari, the Union Minister for Road, Transport, and Highways,
announced the ministry's plan to release NHAI InvIT bonds every 15 days,
offering attractive interest rates of up to 8.50%.
- Interest on NHAI
bonds is paid annually on April 1st, with the final interest disbursed
upon maturity.
Conclusion:
Given their government regulation and AAA rating, NHAI bonds
offer a relatively secure investment option. The decreasing debt of the highway
authority strengthens its financial foundation. The government anticipates NHAI
to generate a total collection exceeding ₹1.40 lakh crore. For those seeking a
long-term, low-risk tax-saving scheme, NHAI presents a compelling option to
consider.
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