“It has been decided to close the 54 EC capital gain bond issue 2022-23 of NHAI with immediate effect. Accordingly, please ensure that no fresh application or money is accepted for these bonds on or after 3rd September 2022. Banks are requested to freeze the credit in the bank account opened for NHAI 54 EC bond collection from 3rd September 2022. The application money, if credited on 3rd September onwards, shall be refunded by the NHAI and claim, if any, made by the investor towards capital gain exemption shall be the responsibility of the seven concerned banks or arrangers," NHAI said in a circular.
This may have come as the central government has directed NHAI to keep borrowings to the minimum over the next three years to prevent its debt from reaching unsustainable levels. Since 2014-15, the highway authority’s debt has swelled to a massive ₹3.44 trillion as of end of January 2022, as reported by Mint.
The 54 EC capital gain bonds are fixed income instruments that help provide investors capital gains tax exemption under section 54EC. Investing in such bonds can reduce tax liability on long-term capital gains from the sale of immovable property. Financial experts say if one wants to save tax, one can look at other 54EC bond options besides those issued by NHAI.
