Skip to main content
← back
Informative

HUDCO Bonds Now Eligible for Capital Gains Tax Exemption u/s 54EC: CBDT

Update / Judgement Date

09 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income Tax

The CBDT has clarified that HUDCO (Housing and Urban Development Corporation Ltd.) bonds are now eligible for capital gains tax exemption under Section 54EC of the Income Tax Act. This allows taxpayers who have made capital gains from the sale of long-term capital assets to invest in these specified HUDCO bonds within the prescribed time limit and claim exemption from tax on the capital gains. This provides an incentive for investment in housing and urban infrastructure development.